Answer:
$25,200 and $58,800
Explanation:
The computation of the depreciation expense and the book value using the sum-of-the-years'-digits method is shown below:
The depreciation expense is
= (Purchase cost - residual value) × useful life ÷ (sum of years)
= ($84,000 - $8,400) × 5 years ÷ (1 + 2 + 3 + 4 + 5)
= $75,600 × 5 years ÷ 15 years
= $25,200
And, the book value is
= Purchase cost - depreciation expenses
= $84,000 - $25,200
= $58,800
We simply applied the above formulas
