Book Value of Fixed Assets Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (Phone) 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): Land and buildings Current Year Preceding Year $16,216 $13,587 Machinery, equipment, and internal-use software 65,982 54,210 Other fixed assets. 8,205 7,279 Accumulated depreciation and amortization (49,099) (41,293) 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) A comparison of the book values of the current and preceding years indicates that they increased depreciation reveals that Apple purchased t A comparison of the total cost and accumulated million of additional fixed assets, which was offset by the additional depreciation expense of s million taken during the current year. b. Would you normally expect Apple's book value of fixed assets to increase or decrease during the year? Increase Feedback Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. Do you see an increase or decrease? Consider what could have affected the results. happens in Rainess that affects assets and deprecation