Book ValueofFixed 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:
	Current Year	Preceding Year
Land and buildings	$526,180		$305,184
Machinery, equipment, and internal-use software	499,871		394,635
Office furniture and equipment	78,927		68,403
Other fixed assets related to leases	636,678		478,824
Accumulated depreciation and amortization	668,249		557,751

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?