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Highsmith Rental Company purchased an apartment building early in 2013. 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:
In 2016, three new refrigerators costing $3,300 were purchased for cash. The old refrigerators, which originally cost $2,700, were sold for $800.
Calculate the group depreciation rate, group life, and depreciation for 2013. (Round the Group depreciation rate to 1 decimal place and Group life to 2 decimal places.)
2. 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 particular event, select "No journal entry required" in the first account field.)
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