Cutter Enterprises purchased equipment for $99,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $5,700. Using the sum-of-the-years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round depreciation rate per year)

Multiple Choice

$24,880 and $43,020 respectively.

$24,880 and $37,320 respectively.

$26,400 and $39,600 respectively.

$26,400 and $33,900 respectively.