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Please help me. I need help answering this question. Thank youuu. Required information CC9-1 Accounting for the Use and Disposal of Long-Lived Assets (LO 9-3,
Please help me. I need help answering this question. Thank youuu.
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 $13,500. The estimated useful life was five years and the residual value was $500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,300 hours; year 2, 2,450 hours; year 3, 2,150 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 $51,000; Cost of Goods Sold $40,000; Other Operating Expenses $5,100; and Interest Expense $1,000. 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
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