Cutter Enterprises purchased equipment for $84,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $3,600.

Using the straight-line method, depreciation for 2017 and the equipment's book value at December 31, 2017, would be:

$16,080 and $51,840.

$33,600 and $50,400.

$16,800 and $67,200.

$16,080 and $48,240.