At the end of Year 1, Herkimer & Co. sells two laptops for $1,800 each. Based on the information in RE11-6 in Year 1, prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops.
In RE11-6, At the beginning of Year 1, Herkimer & Co. purchases a group of 7 laptops for its new hires. The laptops are purchased for $2,300 each with a residual value of $500 each. Herkimer & Co. expects the laptops to be used for three years.
Compute the depreciation rate per year for the group.