QUESTION (10 marks) 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 $7,000. The estimated useful life was five years and the residual value was $500. Assume that the estimated productive life of the machine is 13,000 hours. Expected annual production was year 1, 3,100 hours; year 2, 2,500 hours: year 3, 3,400 hours; year 4, 2,200 hours; and year 5, 1,800 hours Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. 2. Assume NGS sold the hydrotherapy tub system for $2,100 at the end of year 3. Prepare the journal entry and show the calculation 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 S33,000; Other Operating Expenses $4.000; and Interest Expense $800. Create an income statement for year 3 for each of the differery depreciation methods, ending at Income before Income Tax Expense. (Don't forget to include a loss or gain on disposal for each method.)