Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent an- nual report of Apple: Property, Plant, and Equipment (in millions): Preceding Year Current Year Land and buildings $ 6,956 $ 4,863 Machinery, equipment, and internal-use software Other fixed assets 37,038 29,639 5,263 4,513 Accumulated depreciation and amortization (26,786) (18,391) a. Compute the book value of the fixed assets for the current year and the preceding year and explain the differences, if any. Would you normally expect Apple's book value of fixed assets to increase b. or decrease during the year? Why?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Apple Inc. designs, manufactures, and markets personal computers and related software.
Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone)
along with related accessories and services, including online distribution of third-party
music, videos, and applications. The following information was taken from a recent an-
nual report of Apple:
Property, Plant, and Equipment (in millions):
Preceding
Year
Current
Year
Land and buildings
$ 6,956
$ 4,863
Machinery, equipment, and internal-use software
Other fixed assets
37,038
29,639
5,263
4,513
Accumulated depreciation and amortization
(26,786)
(18,391)
a. Compute the book value of the fixed assets for the current year and the preceding
year and explain the differences, if any.
Would you normally expect Apple's book value of fixed assets to increase
b.
or decrease during the year? Why?
Transcribed Image Text:Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent an- nual report of Apple: Property, Plant, and Equipment (in millions): Preceding Year Current Year Land and buildings $ 6,956 $ 4,863 Machinery, equipment, and internal-use software Other fixed assets 37,038 29,639 5,263 4,513 Accumulated depreciation and amortization (26,786) (18,391) a. Compute the book value of the fixed assets for the current year and the preceding year and explain the differences, if any. Would you normally expect Apple's book value of fixed assets to increase b. or decrease during the year? Why?
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