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): 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 X million of additional fixed assets, which was offset by the additional depreciation expense of X million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase Feedback V Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. Do you see an increase or decrease? Consider what could have affected the results. Consider what happens in business that affects assets and depreciation. 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): 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 X million of additional fixed assets, which was offset by the additional depreciation expense of X million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase Feedback V Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. Do you see an increase or decrease? Consider what could have affected the results. Consider what happens in business that affects assets and depreciation