Refer to Indigo Books & Music Inc.'s financial statements in Appendix A at the end of this book and on My Accounting Lab to answer the following questions:

1. With respect to PPE, which amortization/depreciation method does Indigo use for the purpose of reporting to shareholders and creditors in the financial statements? What rates are used, and where did you find your answer?

2. What was the total amount of depreciation expense for 2014 as shown in Note 8?

3. Indigo lists intangible assets on the balance sheet. Where do you find more information about them? What types of intangible assets does Indigo have?

4. Note 4, "Significant Accounting Policies" in the notes to the financial statements includes the subsection "Impairment Testing." Explain the meaning of this subsection, and give an example of when it is used.