Book Value of Fixed Assets Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players (cPod), mobile phones (cPhone), and smartwatches (Cannington Watch) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year $660,580 $383,136 627,551 495,435 799,302 601,128 Accumulated depreciation and amortization (838,937) (700,215) a. Compute the book value of the fixed assets for the current year and the preceding year. $ Current year book value (in millions) Preceding year book value (in millions) Land and buildings Machinery, equipment, and internal-use software Other fixed assets A comparison of the book values of the current and preceding years indicates that they million of additional fixed assets, which was offset by the additional depreciation expense of $ b. Would you normally expect Cannington's book value of fixed assets to increase or decrease during the year? A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $ million taken during the current year.
Book Value of Fixed Assets Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players (cPod), mobile phones (cPhone), and smartwatches (Cannington Watch) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year $660,580 $383,136 627,551 495,435 799,302 601,128 Accumulated depreciation and amortization (838,937) (700,215) a. Compute the book value of the fixed assets for the current year and the preceding year. $ Current year book value (in millions) Preceding year book value (in millions) Land and buildings Machinery, equipment, and internal-use software Other fixed assets A comparison of the book values of the current and preceding years indicates that they million of additional fixed assets, which was offset by the additional depreciation expense of $ b. Would you normally expect Cannington's book value of fixed assets to increase or decrease during the year? A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $ million taken during the current year.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.18E: Book value of fixed assets Apple. Inc., designs, manufactures, and markets personal computers...
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Transcribed Image Text:Book Value of Fixed Assets
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players (cPod), mobile phones (cPhone), and smartwatches
(Cannington Watch) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of
Cannington:
Property, Plant, and Equipment (in millions):
Preceding Year
$383,136
$660,580
627,551
495,435
799,302
601,128
Accumulated depreciation and amortization
(838,937)
(700,215)
a. Compute the book value of the fixed assets for the current year and the preceding year.
Current year book value (in millions)
Preceding year book value (in millions)
Land and buildings
Machinery, equipment, and internal-use software
Current Year
Other fixed assets
A comparison of the book values of the current and preceding years indicates that they
million of additional fixed assets, which was offset by the additional depreciation expense of $
b. Would you normally expect Cannington's book value of fixed assets to increase or decrease during the year?
A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $
million taken during the current year.
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