6. (10 marks) Your company has purchased new production equipment at a cost of $150,000. You expect the equipment to last 10 years and have a salvage value of $25,000. It will cost your company $20,000 to install the equipment. The equipment is classified in a CCA dass with a 20% depreciation rate. Your corporate tax rate is 35%. Final Answer a. (2 marks) What is the cost basis of the equipment? b. (2 marks) For the purposes of your financial statements, your company calculates depreciation using the straight line method. Calculate the book depreciation after 8 years. Final Answer c. (4 marks) Calculate the depreciation for tax purposes during year 3. (use the half-in-first-year rule) Final Answer d. (2 marks) If your company had taxable income of $50,000 before the depreciation deduction in year 3, how much tax would the company pay? Final Ans