Cutter Enterprises purchased equipment for $81,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,600. Using the double-declining-balance method, depreciation for 2021 and the book value at December 31, 2021, would be:

Multiple Choice

• $29,760 and $47,640 respectively.

• $29,760 and $51,240 respectively.

• $32,400 and $48,600 respectively.

• $32,400 and $42,000 respectively.