Assignment Exercise 8–5: Depreciation Computation: Units-of-Service Study the “Units of Service” portion of the chapter closely.

Required 1. Using the format in Table 8–A-5, compute units of service depreciation using the following assumptions:

Cost to be depreciated 5 $50,000 Salvage value 5 zero Total units of service 5 10,000 Units of service per year: Year 1 5 2,200; Year 2 5 2,100;

Year 3 5 2,300; Year 4 5 2,200; Year 5 5 200 2. Using the same format, compute units of service depreciation using adjusted assumptions as follows:

Cost to be depreciated 5 $50,000 Salvage value 5 $5,000 Total units of service 5 10,000 Units of service per year: Year 1 5 2,200; Year 2 5 2,100;

Year 3 5 2,300; Year 4 5 2,200; Year 5 5 200