Cutter Enterprises purchased equipment for $63,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining balance method, depreciation for 2018 and the book value at December 31, 2018, would be:

Multiple Choice

• $22,800 and $40,200 respectively.

• $25,200 and $37,800 respectively.

• $25,200 and $31,800 respectively.

• $22,800 and $34,200 respectively.