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please help! Required information [The following information applies to the questions displayed below] Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to
please help!
Required information [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 $10,000. 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, 2,500 hours; year 3, 2,000 hours; year 4, 2,100 hours; and year 5 , 1,000 hours. Assume NGS sold the hydrotherapy tub system for $3,000 at the end of year 3 . The following amounts were forecast for year 3 : Sales Revenues $47,000; Cost of Goods Sold $37,000; Other Operating Expenses $4,700; and Interest Expense $900. 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. Any losses should be Indicated with a minus sign. Round your answers to the nearest dollar ambunt.) NICOLE'S GETAWAY SPA (Forecasted) Income Statement For the Year Ended Year 3 Step by Step Solution
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