Jing Company was started on January 1, Year 1 when it issued common stock for $27,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $15,100 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,200. The equipment had a five-year useful life and a $5,600 expected salvage value.

Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements?

$2,765 and $15,465.

$268 and $10,700.

$0 and $12,700.

$4,608 and $12,288.