SouthEast Air Distributors recently purchased equipment for its Encino warehouse operations for $87,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $8,400.

Using the straight-line method, depreciation for 2022 and the equipment's book value at December 31, 2022, would be:

Group of answer choices

$15,720 and $55,560 respectively.

$17,400 and $69,600 respectively.

$15,720 and $47,160 respectively.

$34,800 and $52,200 respectively.