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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)
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) Part 3 of 3 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 $19,500. 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, 2.500 hours, year 3, 2,100 hours: year 4.2.100 hours and year 5.1000 hours CC9-1 Part 3 3. Assume NGS sold the hydrotherapy tub system for $5.850 at the end of year 3.The following amounts were forecast for year 3 Sales Revenues 557000, Cost of Goods Sold $44.000, Other Operating Expenses $4,300, 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. Round your answers to the nearest dollar amount.) NICOLE'S GETAWAY SPA | Forecast Income Statement For the Year Ended Year Straight Units of Production Decaning Revenue 3 57.000 Cost of Goods Sold Operating Expenses Other Operating Expenses Depreciation Expense Loss (Cain on Disposal 4.9003 Total Operating Expenses come from Operations Type here to search
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