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Required information CC9-1(Static) Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3,...

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Accounting

Required information
CC9-1(Static) Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5]
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[The following information applies to the questions displayed below.]
Nicoles 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.
CC9-1(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't forget to include a loss or gain on disposal for each method.).(Do not round intermediate calculations.)

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