On January 1, Year 1, Jing Company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms free on board (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?
Multiple Choice
$960 and $24,000
$0 and $24,000
$5,184 and $28,224
$8,640 and $23,040