Apple Computer, Inc., designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (Ipod) along with related accessories and services including the online distribution of third-party music. The following information was taken from a recent annual report of Apple:

a. Compute the book value of the fixed assets for the current year and the preceding year and explain the differences, if any.
b. Would you normally expect the book value of fixed assets to increase or decrease during theyear?

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Property, Plant, and Equipment (in millions): Current Preceding Year Year Land and buildings Machinery, equipment, and internal-use software Office furniture and equipment Other fixed assets related to leases Accumulated depreciation and amortization $361 494 81 545 664 $351 422 79 446 591