[The following information applies to the questions displayed below.]On January 1, Year 1, Jing Company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,000. The equipment had a five-year useful life and a $12,000 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. $960 and $12,000
B. $8,640 and $23,040
C. $0 and $24,000
D. $5,184 and $28,224


Answer: A

Business

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