1. Future Star Company produces a variety of coverings for electrical wiring. On January 1, 2020 it acquired new production equipment at a cost of $500,000. The machine has an expected life of three years and an estimated salvage value of $50,000. Required: 1. Prepare a 3-year depreciation schedule for the machinery under: a. Straight-line method. b. Reducing-balance method. 2. Assume that on January 1, 2021 the company disposed of machine for $300,000. Under the reducing-balance method, compute the gain or loss on disposal for financial reporting purpose. (10 marks)