Problem 8-29A (Algo) Computing and recording units-of-production depreciation LO 8-4, 8-5

Sable Company paid cash for assembly equipment for $693,000 on January 1, Year 1.

The equipment is expected to have a useful life of 330,000 machine hours and a salvage value of $33,000. Actual machine-hour use was as follows:

Year 1	82,000
Year 2	87,000
Year 3	68,000
Year 4	62,000
Year 5	36,000

Required

Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation.

Assume that Sabel earns $243,000 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 a financial statements model. Sabels financial condition immediately prior to the purchase is shown.

Assume that Sabel sold the equipment at the end of the fifth year for $34,900. Calculate the amount of gain or loss on the sale of equipment.

Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. Note: Do not round intermediate calculations. SABEL COMPANY Horizontal Statements Model for Year 1 Complete this question by entering your answers in the tabs below. Assume that Sabel sold the equipment at the end of the fifth year for $34,900. Calculate the amount of gain or loss on the sale of equipment