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 $711,810 $412,850 Machinery, equipment, and internal-use software 676,220 533,858 Office furniture and equipment 106,772 92,535 Other fixed assets related to leases 861,290 647,747 Accumulated depreciation and amortization (903,999) (754,519) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value Preceding year book value b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase