Cutter Enterprises purchased equipment for $51,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $4,500. Using the double-declining balance method, depreciation for 2018 and the book value at December 31, 2018, would be:

Multiple Choice

• $18,600 and $32,400 respectively.

• $20,400 and $30,600 respectively.

• $20,400 and $26,100 respectively.

• $18,600 and $27,900 respectively.