Cutter Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $4,800. 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

• $16,000 and $24,000 respectively.

• $16,000 and $19,200 respectively.

• $14,720 and $22,080 respectively.

• $14,720 and $26,880 respectively.