Question
Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) along with
Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Apple:
Property, Plant, and Equipment (in millions):
Current Year Preceding Year
Land and buildings 6,956 4,863
Machinery, equipment 37,038 29,639
Other fixed assets 5,263 4,513
Acc depreciation/amortization (26,786) (18,391)
a.Compute the book value of the fixed assets for the current year and the preceding year.
Current year book value (in millions)$Preceding year book value (in millions)
Current year book value (in millions)$Preceding year book value (in millions)
A comparison of the total cost and accumulated depreciation reveals that Apple purchased______million of additional fixed assets, which was offset by the additional depreciation expense of_____million taken during the current year.
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