Question
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,
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 Preceding Year Land and buildings $569,960 $330,577 Machinery, equipment, and internal-use software 541,462 427,470 Office furniture and equipment 85,494 74,095 Other fixed assets related to leases 689,652 518,664 Accumulated depreciation and amortization (723,849) (604,158) 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? Increase
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