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Sabel Co. purchased assembly equipment for $875,000 on January 1, 2018. Sabel's financial condition immediately prior to the purchase is shown in Required B.
The equipment is expected to have a useful life of 350,000 machine hours and a salvage value of $35,000.
Actual machine-hour use was as follows:
2018 91,000 hours
2019 96,000 hours
2020 89,000 hours
2021 51,000 hours
2022 25,000. hours
Problem 1: Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation.
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