Cutter Enterprises purchased equipment for $72,000 on January 1, 2024. 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 2024 and book value on December 31, 2024, would be:

Note: Do not round the depreciation rate per year.

Multiple Choice

$22,000 and $44,000, respectively.

$22,000 and $50,000, respectively.

$24,000 and $48,000, respectively.

$24,000 and $42,000, respectively.