Highsmith Rental Company purchased an apartment building early in $2021.$ 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 $2024,$ three new refrigerators costing $$2,700$ were purchased for cash. In that same year, the old refrigerators, which originally cost

$$1,500,$ were sold for $$200.$

Required:

Calculate the group depreciation rate, group life, and depreciation for $2021.$

Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. Highsmith Rental Company purchased an apartment building early in $2021.$ 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:

Appliance Cost Residual Value Service Life

$($in Years$)$

Stoves $ $15,000$ $ $3,0006$

Refrigerators $10,0001,0005$

Dishwashers $8,0005004$

In $2024,$ three new refrigerators costing $$2,700$ were purchased for cash. In that same year, the old refrigerators, which originally cost $$1,500,$ were sold for $$200.$

Required:

$1.$ Calculate the group depreciation rate, group life, and depreciation for $2021.$

$2.$ Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.