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1. Calculate the group depreciation rate, group life, and depreciation for 2024. 2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.

1. Calculate the group depreciation rate, group life, and depreciation for 2024. 2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: Appliance Stoves Refrigerators Dishwashers Cost $ 53,000 48,000 46,000 Residual Value $ 5,000 2,000 1,000 Service Life (in Years) In 2027, two new refrigerators costing $4,600 were purchased for cash. In that same year, the old refrigerators, which originally cost $5,300, were sold for $2,100. Required: 6 5 4 1. Calculate the group depreciation rate, group life, and depreciation for 2024. 2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. Group depreciation rate Group life Depreciation for 2024 (Straight Line) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the group depreciation rate, group life, and depreciation for 2024. Note: Round "Group depreciation rate" and "Group life" answers to 2 decimal places. % years < Required 1 Required 2 >
Transcribed Image Text: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: Appliance Stoves Refrigerators Dishwashers Cost $ 53,000 48,000 46,000 Residual Value $ 5,000 2,000 1,000 Service Life (in Years) In 2027, two new refrigerators costing $4,600 were purchased for cash. In that same year, the old refrigerators, which originally cost $5,300, were sold for $2,100. Required: 6 5 4 1. Calculate the group depreciation rate, group life, and depreciation for 2024. 2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. Group depreciation rate Group life Depreciation for 2024 (Straight Line) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the group depreciation rate, group life, and depreciation for 2024. Note: Round "Group depreciation rate" and "Group life" answers to 2 decimal places. % years < Required 1 Required 2 >
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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