How Many of These Statements Are True of the Composite

Multiple Choice

How many of these statements are true of the composite rate depreciation approach?
The general asset mix of a functional group of assets is assumed to be the same through new assets are added and old assets are sold.
Additions and retirements are assumed to occur uniformly throughout the year.
The method is often used by business entities with many similar assets in one class.
Profits and losses on disposal of assets are debited/credited to the accumulated depreciation account so no losses or profits on disposal are recorded.

A) 1
B) 2
C) 3
D) 4