Hamsworth Rental Company purchased an apartment building early in year 1. There are 25 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: Appliances Cost Residual Value Service Life (in years) Stoves $15, 900 $3, 400 6 Refrigerators 9, 500 1, 100 6 Dishwashers 8, 600 750 4 In year 4, three new refrigerators costing $2, 850 were purchased for cash. The old refrigerators, which originally cost $1, 140, were sold for $325. Required: Calculate the group depreciation rate, group life, and depreciation for year 1. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators