Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,000.
Using the straight-line method, depreciation for 2022 and the equipment's book value at December 31, 2022, would be:
Multiple Choice
$14,400 and $43,200 respectively.
$13,200 and $39,600 respectively.
$13,200 and $45,600 respectively.
$28,800 and $37,200 respectively.
