Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs...
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Accounting
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 $8,500. 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, 2,250 hours; year 2, 2,350 hours: year 3, 2,300 hours: year 4, 2,100 hours; and year 5, 1,000 hours. 3. The following amounts were forecast for year 3: Sales Revenues $44,000; Cost of Goods Sold $34,000: Other Operating Expenses $4,400; and Interest Expense $900. 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 Double- Declining Balance Straight-Line Production Operating Expenses: Total Operating Expenses
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