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 $4,400. The estimated useful life was five years, and the residual value was $400. Assume that the estimated productive life of the machine is 12,600 hours. Expected annual production is: year 1, 3,500 hours: year 2 2,200 hours: year 3, 2,800 hours: year 4. 1,500 hours, and year 5, 2,600 hours. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount. Round your final answers to nearest whole dollar amount.) a. Straight-line Year Depreciation Expense Accumulated Depreciation Book Value At acquisition b. Units-of-production Year Depreciation Expense Accumulated Depreciation Book Value At acquisition 2 3 4 c. Double-declining-balance Year Depreciation Accumulated Expense Depreciation Book Value At acquisition 2 4 2. Assume NGS sold the hydrotherapy tub system for $1,900 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Straight-line method: View transaction list Journal entry worksheet Record the entry to account for the disposal of the asset using straight line method. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet Record the entry to account for the disposal of the asset using Units-of- production method. Note: Enter debits before credits. Transaction General Journal Debit Credit 02 Journal entry worksheet Record the entry to account for the disposal of the asset using Double- declining balance method. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 3. The following amounts were forecast for year 3: Sales Revenues, $38,000: Cost of Goods Sold, $30,000; Other Operating Expenses, $3,400; and Interest Expense, $740. 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 depreciation expense to the nearest whole number.) NICOLE'S GETAWAY SPA (Forecasted) Income Statement For the Year Ended December 31, Year 3 Straight-Line Units-of- Production Double- Declining- Balance Operating expenses Total operating expenses Income before income tax expense