Cutter Enterprises purchased equipment for $102,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $4,200. Using the sum-of-the-years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round depreciation rate per year)

Multiple Choice

• $26,080 and $39,120 respectively.

• $27,200 and $36,600 respectively.

• $26,080 and $43,320 respectively.

• $27,200 and $40,800 respectively.