Cutter Enterprises purchased equipment for $96,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $4,800. Using the straight-line method, depreciation for 2022 and the equipment's book value at December 31, 2022, would be:

Multiple Choice

a) $18,240 and $59,520 respectively.

b) $19,200 and $76,800 respectively.

c) $18,240 and $54,720 respectively.

d) $38,400 and $57,600 respectively.