Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help with this, thank you (straight-line method/double-declining method/units of production method) Required information CC9-1 Accounting for the Use and Disposal of Long-Lived Assets

image text in transcribed

i need help with this, thank you

(straight-line method/double-declining method/units of production method)

Required information CC9-1 Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5] [The following information applies to the questions displayed below.] Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $16,000. The estimated useful life was five years and the residual value was $1,000. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,400 hours; year 2, 2,300 hours; year 3, 2,200 hours; year 4, 2,100 hours, and year 5, 1,000 hours. CC9-1 Part 3 3. The following amounts were forecast for year 3: Sales Revenues $53,000; Cost of Goods Sold $41,000; Other Operating Expenses $5,300, and Interest Expense $1,100. 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.). (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

4th Edition

0324069731, 978-0324069730

More Books

Students also viewed these Accounting questions

Question

True or False: Real GDP always shows the economy's true growth rate

Answered: 1 week ago