On January 1, Year 1, Jing Company Purchased Office Equipment

Multiple Choice

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?

A) $0 and $24,000
B) $960 and $24,000
C) $8,640 and $23,040
D) $5,184 and $28,224