Reducing Balance Depreciation Statements

Steps:

• Identify the reducing balance method: depreciation calculated as a fixed percentage of the asset's current book value each year.
• Recall key features: higher depreciation in early years, declining over time; book value never reaches zero.
• Evaluate statements 1-4 (missing from query) against these features to determine correctness.
• Match correct statements to option D (3 and 4).

Not enough information: Statements 1-4 not provided, preventing verification.

Final answer: Not enough information.