Cutter Enterprises purchased equipment for $102,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $6,600. Using the sum-of-the-years'-digits method, depreciation for 2019 and book value at December 31, 2019, would be: (Do not round depreciation rate per year)

Multiple Choice

• $25,440 and $44,760 respectively.

• $25,440 and $38,160 respectively.

• $27,200 and $40,800 respectively.

• $27,200 and $34,200 respectively.