Highsmith Rental Company purchased an apartment building early in 2016. There are 15 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	$31,000	$4,000	6
Refrigerators	26,000	9,000	5
Dishwashers	24,000	8,000	4

In 2019, three new refrigerators costing $3,500 were purchased for cash. The old refrigerators, which originally cost $3,100, were sold for $1,000.

Required:

Calculate the group depreciation rate, group life, and depreciation for 2016.

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

Please show the steps and calculation.

Thank you!