Calculate the group depreciation rate and group life

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Reference no: EM13335543

Highsmith Rental Company purchased an apartment building early in 2013. 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	$	33,000	$	6,000	6
Refrigerators		28,000		1,000	5
Dishwashers		26,000		9,000	4

In 2016, four new refrigerators costing $3,600 were purchased for cash. The old refrigerators, which originally cost $3,300, were sold for $1,100.

Calculate the group depreciation rate, group life, and depreciation for 2013.

Reference no: EM13335543

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