Question 29 (

Cutter Enterprises purchased equipment for $72,000 on January 1, 2020. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining balance method, depreciation for 2020 and the book value at December 31, 2020, would be:

1)	$26,400 and $45,600 respectively.

2)	$28,800 and $43,200 respectively.

3)	$28,800 and $37,200 respectively.

4)	$26,400 and $36,600 respectively.

Question 30 (

Cutter Enterprises purchased equipment for $72,000 on January 1, 2020. The equipment is expected to have a five-year life and a residual value of $6,000. Using the sum-of-the-years'-digits method, depreciation for 2020 and book value at December 31, 2020, would be:

1)	$22,000 and $44,000 respectively.

2)	$22,000 and $50,000 respectively.

3)	$24,000 and $48,000 respectively.

4)	$24,000 and $42,000 respectively.