Revenue Recognition, Cash and Accrual Bases Cash-basis income statement: *Equipment was purchased at the beginning of year 1 for $119,000 and is expected to last for three years and then to be worth $190. Required: Convert the income statements for each of the three years to the accrual basis. Indicate a net loss with a minus sign. Hathaway Health Club Income Statements Feedback V Check My Work 2. Calculate recoanized sales for each year