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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 $579,070 $335,861
Machinery, equipment, and internal-use software 550,117 434,303
Office furniture and equipment 86,861 75,279
Other fixed assets related to leases 700,675 526,954
Accumulated depreciation and amortization (735,419) (613,814)

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?

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