Question
Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant,
Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington:
Property, Plant, and Equipment (in millions): | ||||
Current Year | Preceding Year | |||
Land and buildings | $593,870 | $344,445 | ||
Machinery, equipment, and internal-use software | 564,177 | 445,403 | ||
Other fixed assets related to leases | 718,583 | 540,422 | ||
Accumulated depreciation and amortization | (754,215) | (629,502) |
a. Compute the book value of the fixed assets for the current year and the preceding year.
Current year book value | $fill in the blank 1 |
Preceding year book value | $fill in the blank 2 |
A comparison of the book values of the current and preceding years indicates that they
. A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $fill in the blank 4 million of additional fixed assets, which was offset by the additional depreciation expense of $fill in the blank 5 million taken during the current year.
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