Cutter Enterprises purchased equipment for $63,000 on January 1, 2016. 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 2016 and book value at December 31, 2016, would be (Do not round depreciation rate per year):

Multiple Choice

• $21,000 and $42,000.

• $19,400 and $38,800.

• $21,000 and $37,200.

• $19,400 and $43,600.