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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 $702,940 $407,705 Machinery, equipment, and internal-use software 667,793 527,205 Other fixed assets related to leases 850,557 639,675 Accumulated depreciation and amortization (892,734) (745,116) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value . A comparison of the total cost and accumulated depreciation reveals that Cannington purchased million taken during the current year. million Preceding year book value A comparison of the book values of the current and preceding years indicates that they of additional fixed assets, which was offset by the additional depreciation expense of $ b. Would you normally expect the book value of fixed assets to increase or decrease during the year
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