Cutter Enterprises purchased equipment for $99,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $3,900. Using the sum-of-the-years'-digits method, depreciation for 2018 and book value at December 31, 2018, would be: (Do not round depreciation rate per year)

Multiple Choice

• $33,000 and $66,000 respectively.

• $31,700 and $67,300 respectively.

• $33,000 and $62,100 respectively.

• $31,700 and $63,400 respectively.