Highsmith Rental Company purchased an apartment building early in $2024.$ 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:

$\backslash$table$[[,,,$Service Life$],[$Appliance$,$Cost,Residual Value,$($in Years$)],[$Stoves$,$$$21,000,$$$3,000,6],[$Refrigerators$,16,000,4,000,5],[$Dishwashers$,14,000,3,000,4]]$

In $2027,$ two new refrigerators costing $$3,000$ were purchased for cash. In that same year, the old refrigerators, which originally cost $$2,100,$ were sold for $$500.$

Required:

Calculate the group depreciation rate, group life, and depreciation for $2024.$

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

Complete this question by entering your answers in the tabs below.