Highsmith Rental Company purchased an apartment building early in 2024. 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	$ 51,000	$ 9,000	6
Refrigerators	46,000	1,000	5
Dishwashers	44,000	9,000	4

In 2027, three new refrigerators costing $4,500 were purchased for cash. In that same year, the old refrigerators, which originally cost $5,100, were sold for $2,000.

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.

A.

Calculate the group depreciation rate, group life, and depreciation for 2024. Note: Round "Group depreciation rate" and "Group life" answers to 2 decimal places.

Group depreciation rate		%
Group life		years
Depreciation for 2024 (Straight Line)

B.

Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Journal entry worksheet

Record the purchase of new refrigerators.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1