Cutter Enterprises purchased equipment for $72,000 on January 1, 2013. The equipment is expected to have a five-year life and a residual value of $6,000.

Using the sum-of-the-years'-digits method, depreciation for 2013 and book value at December 31, 2013, would be:

	$22,000 and $44,000.
	$22,000 and $50,000.
	$24,000 and $48,000.
	$24,000 and $42,000.