/web/1997                                         YEARLY DEPRECIATION SCHEDULE                                            PAGE   1
                                                    FOR XYZ INC. 
 
                                                                                ACC DEP       DEP THIS       YEAR END      DEP NEXT
ASSET  DESCRIPTION                SERIAL #     PURCHASED  LIFE      COST      LAST YEAR    FISCAL YEAR     BOOK VALUE     FISCAL YR 

2002   PONTIAC 2 DOOR COUPE                    /web/83   3    14,447.35 SOLD ON /web/1986
2003   FORD FAIRMONT 4DR                       /web/83   3     2,375.00 SOLD ON /web/1986
2004   CHEVROLET BLAZER          168DC1849BF1  /web/83   3    10,107.50 SOLD ON /web/1986
2005   GMC SAFARI CARGO VAN                    /web/85   3    10,125.58 SOLD ON /web/1989
2006   1986 TOYOTA VAN                         /web/85   3    11,682.75 SOLD ON /web/1991
2007   CHEVROLET BLAZER          168EK1841GF1  /web/86   3    19,081.83 SOLD ON /web/1988
4352   WHITE NISSAN 1993 PICKUP  IN6SD11S9PC3  /web/92  60    12,927.56       9,133.00           0.00       3,794.56          0.00
4404   RED MAZDA COUPE           JM1BF2324J02  /web/93  36     2,646.43 SOLD ON /web/1993
4418   WHITE PANEL VAN           JT4YR28V8K50  /web/94  60     4,492.88       3,262.04         733.20         497.64        733.20
4429   NISSAN KING CAB TRUCK     1N6SD16S2SC3  /web/95  60    14,882.91       4,881.64       3,772.80       6,228.47      3,051.00
01.01.1305   ACCOUNT TOTALS                                    32,303.35      17,276.68       4,506.00      10,520.67      3,784.20

4001   REFRIGERATOR                            /web/82   5        50.00 SOLD ON /web/1986
4002   AUDIO EQUIPMENT - YAMAHA                /web/83   5     1,480.00       1,480.01           0.00           0.00          0.00
4003   OFFICE FURNITURE                        /web/83   5       413.70         413.70           0.00           0.00          0.00
4005   TOOLS                                   /web/83   5        99.00          99.00           0.00           0.00          0.00
4056   CREDENZA - TEAK                         /web/83   5       325.00         325.00           0.00           0.00          0.00
4057   CREDENZA - TEAK 3 DRAWER                /web/83   5       429.00         429.00           0.00           0.00          0.00
4006   TYPEWRITER - IBM                        /web/83   5       789.99 SOLD ON /web/1991
4014   BURGLAR ALARM                           /web/84   5     1,001.70         951.54           0.00          50.16          0.00
4007   TELEPHONE SYSTEM                        /web/84   5     9,110.70 SOLD ON /web/1993
4008   PRINTER STAND                           /web/84   5       137.00         130.26           0.00           6.74          0.00
4009   DESK W/WORK TABLE                       /web/84   5       641.40         609.20           0.00          32.20          0.00
4010   DESK W/WORK TABLE                       /web/84   5       641.40         609.20           0.00          32.20          0.00