Metzger, Inc.purchased ten portable heating units for $5, 000 each, with an average expected service life of four years and a residual value of $700 each.The depreciation rate for the assets, assuming the group depreciation method is used, will be

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The group depreciation rate is calculated based on the total cost, total residual value, and total service life of the assets. The total cost of the ten portable heating units is $50,000 (10 units * $5,000 each). The total residual value is $7,000 (10 units * $700 each). The total depreciable amount is $43,000 ($50,000 total cost - $7,000 total residual value). Over a service life of 4 years, the annual depreciation is $10,750 ($43,000 / 4 years). The depreciation rate is the annual depreciation divided by the total cost, which is $10,750 / $50,000 = 21.5%.