Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries: Property, Plant, and Equipment (in millions):   Current Year Preceding Year Land and buildings $736,180   $426,984   Machinery, equipment, and internal-use software 699,371   552,135   Office furniture and equipment 110,427   95,703   Other fixed assets related to leases 890,778   669,924   Accumulated depreciation and amortization (934,949)   (780,351)   a.  Compute the book value of the fixed assets for the current year and the preceding year. Current year book value $ Preceding year book value $ b.  Would you normally expect the book value of fixed assets to increase or decrease during the year?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
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Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries:

Property, Plant, and Equipment (in millions):
  Current Year Preceding Year
Land and buildings $736,180   $426,984  
Machinery, equipment, and internal-use software 699,371   552,135  
Office furniture and equipment 110,427   95,703  
Other fixed assets related to leases 890,778   669,924  
Accumulated depreciation and amortization (934,949)   (780,351)  

a.  Compute the book value of the fixed assets for the current year and the preceding year.

Current year book value $
Preceding year book value $

b.  Would you normally expect the book value of fixed assets to increase or decrease during the year?
 

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