Highsmith Rental Company purchased an apartment building early in 2016. 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: Stoves; Cost: $39,000; Residual Value: $3,000; Service Life( in years):6

Appliance: Refrigerators; Cost: $34,000; Residual Value: $4,000; Service Life( in years):5

Appliance: Dishwashers; Cost: $32,000; Residual Value: $3,000; Service Life( in years):4

In 2019, two new refrigerators costing $3,900 were purchased for cash. The old refrigerators, which orignially cost $3,900, were sold for $1,400.

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

Group depreciation rate: %

Group life: years

Depreciation for 2016 (Straight Line):

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