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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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