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. At the end of Year 5, the equipment was still owned by Jing Company. What is the book value of the office equipment using the straight-line method and double-declining-balance method, respectively?

A) $12,000 and $1,680.
B) $12,000 and $12,000.
C) $0 and $0.
D) None of these answer choices are correct.