Cutter Enterprises purchased equipment for $48,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $3,900.

Using the sum-of-the-years'-digits method, depreciation for 2016 and book value at December 31, 2016, would be (Do not round depreciation rate per year):

$14,700 and $29,400.

$14,700 and $33,300.

$16,000 and $28,100.

$16,000 and $32,000.