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

A) 20%
B) 21.5%
C) 25%
D) 29%

Group Depreciation Method

An accounting method that applies a single depreciation rate to a group or pool of assets with similar characteristics and useful lives, instead of depreciating each asset individually.

Depreciation Rate

The percentage rate at which an asset is depreciated across its useful life, essentially spreading its cost over time.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, after depreciation has been subtracted.