Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington Property, Plant, and Equipment (in millions) Current Year Preceding Year Land and buildings $670,700 $389,006 Machinery, equipment, and internal use software 637,165 503,025 Other fixed assets related to leases B11,547 610,337 Accumulated depreciation and amortization (851,789) (710,942) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value 2,079,170 X Preceding year book value 791,426 A comparison of the book values of the current and preceding years indicates that they increased A comparison of the total cost and accumulated depreciation reveals that Cannington purchased million of additional fixed assets, which was offset by the additional depreciation expense of million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase Check My Wust 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 Consider what happens in business that affects assets and depreciation Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington Property, Plant, and Equipment (in millions) Current Year Preceding Year Land and buildings $670,700 $389,006 Machinery, equipment, and internal use software 637,165 503,025 Other fixed assets related to leases B11,547 610,337 Accumulated depreciation and amortization (851,789) (710,942) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value 2,079,170 X Preceding year book value 791,426 A comparison of the book values of the current and preceding years indicates that they increased A comparison of the total cost and accumulated depreciation reveals that Cannington purchased million of additional fixed assets, which was offset by the additional depreciation expense of million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase Check My Wust 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 Consider what happens in business that affects assets and depreciation