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Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players ( cPod ) , mobile phones (
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players cPod mobile phones cPhone and smartwatches Cannington Watch along with related accessories and services, including online distribution of thirdparty music, videos, and applications. The following information was taken from a recent annual report of Cannington:
Cannington:
Property, Plant, and Equipment in millions:
a Compute the book value of the fixed assets for the current year and the preceding year.
Current year book value in millions
Preceding year book value in millions
million of additional fixed assets, which was offset by the additional depreciation expense of million taken during the current year.
b Would you normally expect Cannington's book value of fixed assets to increase or decrease during the year?
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