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 $769,370 730,902 930,938 (977,100) K Preceding Year $446,235 577,028 700,127 (815,532) Land and buildings Machinery, equipment, and internal-use software Other fixed assets related to leases Accumulated depreciation and amortization 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 A comparison of the book values of the current and preceding years indicates that they depreciation reveals that Cannington purchased $ million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? A comparison of the total cast and accumulated million of additional fixed assets, which was offset by the additional depreciation expense of $

Cannington, Inc, des-gns, manufactutes, and markets personal computers and related software. The following informabion was taken from a recent annual report of Cannington industries: Property, Plant, and Equipment (in militions): a. Compute the book value of the fixed assets for the current year and the preceding yeat. A comparisan of the book yalues of the current and preceding years indicates that they - A comparisan of the total cost and accumulated depreciation reveals that Cannington purchased s million of addicional fixed assets, which was offset by the additional depreciation eipense of millian taken during the current year. b. Would you normally expect the book value of fixed assets to increase ef decrease during the year