Cutter Enterprises purchased equipment for $81,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $8,400.
Using the sum-of-the-years'-digits method, depreciation for 2025 and book value on December 31, 2025, would be:
Note: Do not round the depreciation rate per year.
Multiple Choice
$19,360 and $29,040, respectively.
$19,360 and $37,440, respectively.
$21,600 and $32,400, respectively.
$21,600 and $24,000, respectively.