Sabel Co. purchased assembly equipment for $864,000 on January 1, Year 1. The equipment is expected to have a useful life of 360,000 miles and a salvage value of $36,000. Actual mileage was as follows: Year 1 92, 908 Year 2 97, 908 Year 3 88, 090 Year 4 59, 908 Year 5 26,909 Required a. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. b. Assume that Sabel earns $246,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and the depreciation expense for the first year In the following financial statements model. c. Assume that Sabel sold the equipment at the end of the fifth year for $38,200. Calculate the amount of gain or loss on the sale. Complete this question by entering your answers in the tabs below. Required A Required B Required C Assume that Sabel earns $246,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and the depreciation expense for the first year in the following financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and leave the cell blank to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) Show less AAssume that Sabel earns $246,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and the depreciation expense for the first year in the following financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and leave the cell blank to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) Show less A SABEL CO. Horizontal Statements Model for Year 1 Balance Sheet Income Statement Assets Stockholders' Equity Revenue Expense = Net Income Cash Flow Event Cash + Book Value of Common Retained Equipment Stock Earnings Balance 60,000 + 960,000 + Equipment + Revenue Depreciation + Balance +