Archie Co. purchased a framing machine for $45,000 on July 1, 2021. The machine is expected to have a lifespan of four years, with a residual value of $5,000 at the end of the four years.

Using the sum of the digits of years method, depreciation for 2021 and carrying value as of December 31, 2021 would be:

Answer Choice Group

$16,000 and $29,000 respectively.

$8,000 and $32,000 respectively.

16,000 and 24,000 respectively

8,000 and 37,000 respectively