Question 3 (40 marks) In the year of 2018, AAL Co purchased two machines for producing metal at a cost $30,000 each, on 1 January and 1 July respectively. The useful life of the machine is five years with no residual value. AAL Co uses the straight-line method for depreciation on a time-apportioned basis. Because of unexpected changes in market demand for metal, AAL Co would like to change its business strategy, reduce the production of metal and switch to producing plastic. As a result, on 31 March 2020, one metal-making machine (purchased on 1 January 2018) was sold to a buyer for $20,000. On 1 December 2020, AAL Co decided to terminate the production of metal and sold the second machine (purchased on 1 July 2018) for $10,000. Required: a Calculate the depreciation charges for 2018, 2019, 2020 and the gain or loss on disposal of machinery. (13 marks) b Using the above information of AAL Co, prepare the accounting journal entries (with dates and narratives) in 2018, 2019 and 2020. (27 marks)