Cutter Enterprises purchased equipment for $90,000 on January 1,
2016. The equipment is expected to have a five-year life and a
residual value of $5,700.

Using the sum-of-the-years’-digits method, depreciation for 2017
and book value at December 31, 2017, would be (Do not round
depreciation rate per year):

a. $24,000 and $30,300.

b. $22,480 and $33,720.

c. $24,000 and $36,000.

d. $22,480 and $39,420.