6-27A (Algo) Computing and recording units-of-production depreciation LO 6-4, 6-5 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 92,000 Year 2 Year 3 97,000 88,000 Year 4 Year 5 59,000 26,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. (Do not round intermediate calculations.) Years Depreciation Year 1 Year 2 Year $ 500,480 3 Year Required A Required B Required C Compute the depreciation for each of the intermediate calculations.) Years Depreciation Year $ 500,480 x 1 Year 2 Year 3 Year 4 Year 5 omplete this question by entering your answers in the tabs below. equired A Required B Required C sume 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 depreciatio ear 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 fina hange 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.) SABEL CO. Horizontal Statements Model for Year 1 Balance Sheet Income Statement Assets Stockholders' Equity Revenue Expense Net Income Cash Flow Book Value Event Cash of = Common Stock Retained Earnings = Equipment Balance 960,000 + 960,000 Equipment + + = Revenue Depreciation Balance 960,000 0 960,000 0 0 0 0 0 Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required 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