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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)

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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) 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 $24,500. The estimated useful life was five years and the residual value was $1,500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,500 hours; year 2, 2,400 hours; year 3, 2,000 hours: year 4, 2,100 hours; and year 5, 1.000 hours CC9-1 Part 3 3. Assume NGS sold the hydrotherapy tub system for $7,350 at the end of year 3.The following amounts were forecast for year 3: Sales Revenues $61000; Cost of Goods Sold $48,000; Other Operating Expenses $4,100; and interest Expense $600. 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.) 3. Assume NGS sold the hydrotherapy tub system for $7,350 at the end of year 3.The following amounts were forecast for year 3: Sales Revenues $51,000, Cost of Goods Sold $48,000; Other Operating Expenses $4,100; and Interest Expense $600. 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 (Forecasted) Income Statement For the Year Ended Year 3 Straight-Line Units-of- Production Double- Declining Balance 0 0 0 Operating Expenses Total Operating Expenses 0 0 0 0

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