Chapter 11, Problem 11.10E

Requirement – 1

To determine

Group Depreciation:

Group depreciation is the method of distribution of cost based on the collection of depreciable assets which have similar useful service lives and attributes. Use the following formula to determine the annual depreciation.

$\text{Depreciation = Original cost of the group }\times \text{ Group rate }$

To calculate: The group depreciation rate, group life, and depreciation for 2016.

Requirement – 2

To determine

To prepare: The journal entries to record the purchase of new refrigerator and the sale of the old refrigerators.