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	$	23,000		$	5,000		6
Refrigerators		18,000			5,000		5
Dishwashers		16,000			4,000		4

In 2024, five new refrigerators costing $3,100 were purchased for cash. In that same year, the old refrigerators, which originally cost $2,300, were sold for $600. 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.