Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,750 at the end of ten years. Using the straight-line method, depreciation expense for 2022 and the book value December 31, 2022, would be: Multiple Choice $6,775 and $60,950. O O $7,450 and $52,850. $6.775 and $54,200. $7,450 and $59,600