On January 1, 2024, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment is 10 years, and the estimated residual value is $5,000. The equipment is expected to produce 220,000 units during its life. Calculate the depreciation for 2024 and 2025 using the sum-of-the-years'-digits method.
a) $26,400 for 2024 and $21,120 for 2025
b) $28,000 for 2024 and $22,400 for 2025
c) $23,000 for 2024 and $18,400 for 2025
d) $25,000 for 2024 and $20,000 for 2025
