Problem 8-29A Computing and recording units-of-production depreciation LO 8-4, 8-5 Sabel Co. purchased assembly equipment for $608,000 on January 1 Year 1. Sabel's financial condition immediately prior to the purchase is shown in Required B. The equipment is expected to have a useful life of 320,000 machine hours and a salvage value of $32,000. Actual machine-hour use was as follows Year 1 Year 2 Year 3 Year 4 Year 5 55,000 84,000 79,000 45,000 22,000 Required a. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation b. Assume that Sabel earns $242,000 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 horizontal statements model, c. Assume that Sabel sold the equipment at the end of the fifth year for $33,800 Record the general journal entry for the sale. Required A Required B Required Assume that 5abel eams 5242,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and the deprec year in a horizontal statements model. In the Cash Flow column, use the initials OA to designate operating activity, IA for Investing activity, FA for financing cash and NA to indicate the element is not affected by the event, Enter any decreases to account balances with a minus sign.) SOBELCO Horizontal Statement Model for You 1 Balance Sheet Income Statement Assets Stockholders' Equity Revenue Expense Cash Book Value ol Common Retained Equipment Stock Earnings 920.000 920.000 Net Income Cash Flow NA Event Balance Equipment Revenge Depreciation Banco 520 000 920,000 0