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 industries: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $696,690 $404,080 Machinery, equipment, and internal-use software 661,856 522,518 Other fixed assets related to leases 842,995 633,988 Accumulated depreciation and amortization (884,796) (738,491) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value 1,316,745 Preceding year book value 822,095 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 fixed assets, which was offset by the additional depreciation expense of $ million taken during the current year. million of additional b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Decrease