Question

Highsmith Rental Company purchased an apartment building early in 2018. There are 20 apartments in the building and each is furnished with major kitchen appliances. The company has decided to use the group depreciation method for the appliances. The following data are available: Residual Service Life Appliance Stoves Refrigerators Dishwashers Value $33,000 6,000 1,000 26,000 9,000 Cost (in Years) 28,000 In 2021, four new refrigerators costing $3,600 were purchased for cash. The old refrigerators, which originally cost $3,300, were sold for $1,100. Required 1. Calculate the group depreciation rate, group life, and depreciation for 2018. 2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. Calculate the group depreciation rate, group life, and depreciation for 2018. (Round "Group depreciation rate" and "Group life" answers to 2 decimal places.) Group depreciation rate Group life Depreciation for 2018 (Straight Line) years Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the purchase of new refrigerators Note: Enter debits before credits. Event General Journal Debit Credit View general journal Record entry Clear entry

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