On January 1, Year 1, Jing Company purchased office equipment that cost $42,500 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $3,700. The equipment had a five-year useful life and a $13,700 expected salvage value.

Assuming the company uses the double-declining-balance depreciation method, what are the amounts of depreciation expense and book value, respectively, that would be reported in the financial statements prepared as of December 31, Year 3?

Multiple Choice

$0 and $13,700

$2,932 and $13,700

$11,088 and $16,632

$6,653 and $9,979