J. Kendrick Noble, analyst at Paine Webber, was quoted in USA Today (June 19, 1990) as say¬ ing in reference to a spending boom in the newspaper industry: “We're seeing more spent on plant and equipment today than at any time since just after World War II.” Indeed, during 1990 newspapers like The New York Times, the Los Angeles Times, The Philadelphia Inquirer, The Dallas Morning News, and The Seattle Times spent well in excess of $1 billion to replace worn out equipment, buy presses capable of printing color and customized newspapers, and move operations into suburban plants. Lately, Rockwell International, the largest U.S. printing press maker, has sold more than $1 billion a year of its specialized Goss presses in response to this demand. 470 Part 3 Assets: A Closer Look REQUIRED: Discuss the important accounting issues related to this activity. Specifically, what issues will these newspaper companies have to consider when accounting for old equipment? On which financial statements will these activities be reflected? And what issues must be considered when accounting for the new investments?