Cutter Enterprises purchased equipment for $45,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $8,400. Using the sum-of-the-years'-digits method, depreciation for 2021 and book value at December 31, 2021, would be: (Do not round depreciation rate per year)

Multiple Choice

• $15,000 and $21,600 respectively.

• $12,200 and $32,800 respectively.

• $12,200 and $24,400 respectively.

• $15,000 and $30,000 respectively.