Financial and Management Accounting

1: Consider the following statements with respect to the sinking-fund method of depreciation 1. Depreciation is smaller than the assets annual depreciable cost. 2. Amount of interest constantly declines due to assets reducing balance. 3. Annual net incidence on profit and loss account remains constant due to changing fixed depreciation. 4. Periodic depreciation is recorded through the asset account. Which of the above statements are correct?