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Required information

CC$9-1($Stotic$)$ 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 welliness 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 $13\mathrm{.}000$ hours. Expected arnual production was year $1,3,100$ hours; yeer $2,2,500$ hours, year $3,3,400$ hours, year $4,2,200$ hours, and year $5,1800$ hours.

CC$9-1($Static$)$ Part $2$

$2.$ Assume NGS sold the hydrotherapy tub sysiem for $$2,00$ 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.$)$

Journal entry worksheet

A

B

C

Record the disposal of the hydrotherapy tub syitem for $12,100$ in year $3$

assuming depreciation was calculated using the straight$-$line method.

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