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 2014 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.
Required: 1. Complete a depreciation schedule for each of the alternative methods
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
2. Assume NGS sold the hydrotherapy tub system for $2,100 at the end of 2016. 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.)