Book Value of Fixed Assets

The following data (in millions) were adapted from recent annual reports of United Parcel Service, Inc. (UPS). UPS provides delivery and freight services throughout the world.

	Year 2	Year 1
Vehicles	$743,040		$430,963
Aircraft	705,888		557,280
Land	111,456		96,595
Building and improvements	899,078		676,166
Equipment	958,522		951,091
Construction in progress	14,861		7,430
Less accumulated depreciation	(943,661)		(787,622)

a. Compute the book value of the fixed assets for years 1 and 2.

Year 2 book value	$___________million
Year 1 book value	$___________million

b. UPS appears to have (expanded or reduced) its operations in year 2 from (sales or purchases) of fixed assets. This is typical of (slowly or rapidly) growing companies.