ABC purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a

five-year life, with a residual value of $5,000 at the end of five years.

Using the straight-line method, depreciation expense for 2019 and the book value at

December 31, 2019 would be:

Multiple Choice

• $12,000 and $31,000.

• $12,000 and $36,000.

• $11,000 and $33,000.

• $11,000 and $38,000