CC9-1 Accounting for the Use and Disposal of Long-Lived Assets Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellnes at NGS. The machine was purchased at the beginning of the year at a cost of $7,000. The $7,000. The estimated useful life was five years and the residual value was $500. Assume that the es life of the machine is 13,000 hours. Expected annual production was year 1, 3,100 hour 2.500 hours; year 3, 3,400 hours; year 4, 2.200 hours; and year 5, 1,800 hours. Required: Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. 1. 2. Assume NGS sold the hydrotherapy tub system for $2,100 at the end of year 3. Pre- pare the journal entry to account for the disposal of this asset under the three different methods. 3. The following amounts were forecast for year 3: Sales Revenues $42,000: Cost of Goods Sold $33,000: Other Operating Expenses $4,000; and Interest Expense $800. Create an income statement for year 3 for each of the different depreciation methods, ending at Income before Income Tax Expense. (Don't forget to include a loss or gain on disposal for each method.)