Cutter Enterprises purchased equipment for $63,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $3,300.

Using the sum-of-the-years'-digits method, depreciation for 2021 and book value at December 31, 2021, would be:(Do not round depreciation rate per year)

Multiple Choice

• $19,900 and $43,100 respectively.
• $19,900 and $39,800 respectively.
• $21,000 and $42,000 respectively.
• $21,000 and $38,700 respectively.