Cutter Enterprises purchased equipment for $$81,000$ on January $1,2024.$ The equipment is expected to have a five$-$year life and a residual value of $$8,400.$

Using the sum$-$of$-$the$-$years'$-$digits method, depreciation for $2025$ and book value on December $31,2025,$ would be:

Note: Do not round the depreciation rate per year.

Multiple Choice

$$19,360$ and $$29,040,$ respectively.

$$19,360$ and $$37,440,$ respectively.

$$21,600$ and $$32,400,$ respectively.

$$21,600$ and $$24,000,$ respectively.

Cutter Enterprises purchased equipment for $$60,000$ on January $1,2024.$ The equipment is expected to have a five$-$year life and a residual value of $$5,100.$

Using the sum$-$of$-$the$-$years'$-$digits method, depreciation for $2025$ and book value on December $31,2025,$ would be:

Note: Do not round the depreciation rate per year.

Multiple Choice

$$16,000$ and $$18,900,$ respectively.

$$16,000$ and $$24,000,$ respectively.

$$14,640$ and $$21,960,$ respectively.

$$14,640$ and $$27,060,$ respectively.