Angle Co. purchased assembly equipment for $600,000 on January 1, 2013. Angle's financial condition immediately prior to the purchase is shown in the following horizontal statements model:
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The equipment is expected to have a useful life of 200,000 machine hours and a salvage value of $20,000. Actual machine hour use was as follows:
2013 ......... 56,000
2014 ......... 61,000
2015 ......... 42,000
2016 ......... 36,000
2017 ......... 10,000
Required:
a. Compute the depreciation for each of the five years, assuming the use of units of production depreciation.
b. Assume that Angle earns $210,000 of cash revenue during 2013. 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 like the preceding one.
c. Assume that Angle sold the equipment at the end of the fifth year for $21,500. Record the general journal entry for the sale.