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 $16,000. The estimated useful life was five years and the residual value was $1,000. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,400 hours; year 2, 2,300 hours; year 3, 2,200 hours; year 4, 2,100 hours; and year 5, 1,000 hours. CC9-1 Part 3 3. The following amounts were forecast for year 3: Sales Revenues $53,000; Cost of Goods Sold $41,000; Other Operating Expenses $5,300; and Interest Expense $1,100. 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.)
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 $16,000. The estimated useful life was five years and the residual value was $1,000. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,400 hours; year 2, 2,300 hours; year 3, 2,200 hours; year 4, 2,100 hours; and year 5, 1,000 hours. CC9-1 Part 3 3. The following amounts were forecast for year 3: Sales Revenues $53,000; Cost of Goods Sold $41,000; Other Operating Expenses $5,300; and Interest Expense $1,100. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Denger
![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 $16,000.
The estimated useful life was five years and the residual value was $1,000. Assume that the
estimated productive life of the machine is 10,000 hours. Expected annual production was year 1,
2,400 hours; year 2, 2,300 hours; year 3, 2,200 hours; year 4, 2,100 hours; and year 5, 1,000
hours.
CC9-1 Part 3
3. The following amounts were forecast for year 3: Sales Revenues $53,000; Cost of Goods Sold $41,000;
Other Operating Expenses $5,300; and Interest Expense $1,100. 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4145965f-db43-4dfd-9cad-1bdf1e857dda%2F508ca556-12e7-455d-8836-68d0ee6ba062%2Fym4vwyv_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $16,000.
The estimated useful life was five years and the residual value was $1,000. Assume that the
estimated productive life of the machine is 10,000 hours. Expected annual production was year 1,
2,400 hours; year 2, 2,300 hours; year 3, 2,200 hours; year 4, 2,100 hours; and year 5, 1,000
hours.
CC9-1 Part 3
3. The following amounts were forecast for year 3: Sales Revenues $53,000; Cost of Goods Sold $41,000;
Other Operating Expenses $5,300; and Interest Expense $1,100. 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.)
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