Required information

CC$9-1($Static$)$ 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 $$7,000.$ The estimated useful life was five years and the residual value was $$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.

$9-1($Static$)$ Part $3$

Assume NGS sold the hydrotherapy tub system for $$2,100$ at the end of year $3.$ The following amounts were forecast for year $3$: Sales Revenues $$42,000$; Cost of Goods Sold $$33,000$; Other Operating Expenses $$4,000$; and Interest Expense $$800.$ Create an income statement for year $3$ for each of the different depreciation methods, ending at Income before Income Tax Expense. $($Don$\text{'}$t forget to include a loss or gain on disposal for each method.$).($Do not round intermediate calculations.$)$

NICOLE'S GETAWAY SPA

$($Forecasted$)$ Income Statement

For the Year Ended Year $3$

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