Student ID: Question 14 A chocolate factory buys a new piece of equipment to update its production line for $160 000. The Australian Taxation Office allows depreciation on this equipment as a legitimate tax deduction. a) If the company depreciates the equipment at a rate of 7% p.a. on a reduced balance basis, what is the salvage (book) value of the tools after 3 years? Give your answer to the nearest whole dollar. b) When the book value of the equipment falls below $50000, the company can write off the equipment on the next year's tax return. If the company depreciates the equipment by 4.6% of the original value each year (i.e, on a straight-line basis), in how many years can the equipment be written off