A is corrent. Under the group method, depreciation is recorded until the book value of the group is depreciated to the salvage value of the group. This is done by using an average life of all assets in the group. As assets are retired, the group salvage value is reduced, and no gains or losses are recognized on the retirements. The solutions approach is to recall the necessary journal entry.| Cash, other consideration | (Amt received) | | | Accumulated depreciation | (plug) | | | Asset | | (Orig. cost) |
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