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Year 3 Double Declining Method:

Depreciation Expense=1944

Accumulated Depreciation=10584

Book Value=2916

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 $13,500. 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 2.2.450 hours year 3, 2,150 hours; year 4, 2100 hours; and year 5.1,000 hours. CC9-1 Part 2 2. Assume NGS sold the hydrotherapy tub system for $4,050 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest dollar amount.) Journal entry worksheet Record the disposal of hydrotherapy tub system for $4,050 in year 3 assuming depreciation was calculated using the double-declining method. Note: Enter debits before credits. Transaction Debit Credit 3 General Journal Cash Loss on Disposal 4,050 Record entry Clear entry View general journal

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