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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 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 $506,460 $293,747 Machinery, equipment, and internal use software 481,137 379,845 Office furniture and equipment 75,969 65,840 Other fixed assets related to leases 612,817 460,879 Accumulated depreciation and amortization (643,204) (536,848) a. Compute the book value of the fixed assets for the corrent 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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