Cutter Enterprises purchased equipment for $75,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,600. Using the straight-line method, depreciation for 2022 and the equipment's book value at December 31, 2022, would be:

Multiple Choice

• $13,680 and $47,640 respectively.

• $13,680 and $41,040 respectively.

• $15,000 and $60,000 respectively.

• $30,000 and $45,000 respectively.