51:09okncesHighsmith Rental Company purchased an apartment building early in 2024. There are 20 apartments in the building and each isfurnished with major kitchen appliances. The company has decided to use the group depreciation method for the appliances. Thefollowing data are available:ApplianceStovesRefrigeratorsDishwashersCost$ 37,00032,00030,000Residual Value$ 4,0003,0002,000Service Life(in Years)In 2027, three new refrigerators costing $3,800 were purchased for cash. In that same year, the old refrigerators, which originally cost$3,700, were sold for $1,300.Required 1 Required 2Required:1. Calculate 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.Complete this question by entering your answers in the tabs below.Group depreciation rateGroup lifeDepreciation for 2024 (Straight Line)654Calculate 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 1Required 2 >k

Group depreciation rate and group life are methods used to depreciate assets collectively rather…

Answered: 1. Calculate the group depreciation…

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

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

51:09
ok
nces
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
Stoves
Refrigerators
Dishwashers
Cost
$ 37,000
32,000
30,000
Residual Value
$ 4,000
3,000
2,000
Service Life
(in Years)
In 2027, three new refrigerators costing $3,800 were purchased for cash. In that same year, the old refrigerators, which originally cost
$3,700, were sold for $1,300.
Required 1 Required 2
Required:
1. Calculate 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.
Complete this question by entering your answers in the tabs below.
Group depreciation rate
Group life
Depreciation for 2024 (Straight Line)
6
5
4
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 >
k

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