On January 1, Year 1, Jing Company purchased office equipment that cost $18,300 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2800. The equipment had a five-year useful life and a $7140 expected salvage value.Assuming the company uses the double-declining-balance depreciation method, what are the amounts of depreciation expense and accumulated depreciation, respectively, that would be reported in the financial statements prepared as of December 31, Year 3?

A. $0 and $18,800
B. $4147 and $22,947
C. $456 and $7140
D. $6912 and $18,432


Answer: C

Business

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