$\backslash$table$[[$Statement of Cash Flows,Year $1,$Year $2,$Year $3],[,,,],[\backslash$table$[[$Investing $-$ Purchase of$],[$Machinery$]],,,],[\backslash$table$[[$Operations $-$ Depreciation$],[$Expense$]],,,]]$

$\backslash$table$[[$Income Statement,,,$],[$Depreciation Expense,,,$],[,,,]]$ABC Co recently spent $$1,200,000$ to acquire a piece of equipment. The accounting staff is unsure how to properly classify and record the purchase.

Alternative $1$: One employee argues that future benefits of the equipment are unknown beyond the current year $[$meaning that all the future economic benefit is in the current year$]$ and that the expenditure should be expensed completely on the current year income statement.

Alternative $2$: Another employee argues that the expenditure will benefit the current year plus two additional years and should be capitalized as a depreciable asset, depreciating it to a $$0$ salvage value using straight$-$line over a $3-$year time period.

Required: Using the template provided in Canvas, show the financial statement impacts of these two alternatives over the three$-$year period. Ignore income taxes. You will not need to use all lines in the template but remember items in the balance sheet are cumulative amounts and items in the income statement are not cumulative.