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Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year $705,360 670,092 853,486 (895,807) Land and buildings Machinery, equipment, and internal-use software 529.020 Other fixed assets related to leases 641,878 Accumulated depreciation and amortization (747,682) 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 A comparison of the book values of the current and preceding years indicates that they increased during the current year. Feedback Preceding Year $409,109 b. Would you normally expect the book value of fixed assets to increase or decrease during the year? - V Increase 45 ✓. A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $6- Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. Do you see an increase or decrease? Consider what could have affected the results. Consider what happens in business that affects assets and depreciation.

Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year $705,360 670,092 853,486 (895,807) Land and buildings Machinery, equipment, and internal-use software 529.020 Other fixed assets related to leases 641,878 Accumulated depreciation and amortization (747,682) 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 A comparison of the book values of the current and preceding years indicates that they increased during the current year. Feedback Preceding Year $409,109 b. Would you normally expect the book value of fixed assets to increase or decrease during the year? - V Increase 45 ✓. A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $6- Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. Do you see an increase or decrease? Consider what could have affected the results. Consider what happens in business that affects assets and depreciation.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $705,360 $409,109 Machinery, equipment, and internal-use software 670,092 529,020 Other fixed assets related to leases 853,486 641,878 Accumulated depreciation and amortization (895,807) (747.682) 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 A comparison of the book values of the current and preceding years indicates that they increased during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase Feedback ✓. A comparison of the total cost and accumulated depreciation reveals that Cannington purchased Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. Do you see an increase or decrease? Consider what could have affected the results. Consider what happens in business that affects assets and depreciation. 4 6
Transcribed Image Text:Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $705,360 $409,109 Machinery, equipment, and internal-use software 670,092 529,020 Other fixed assets related to leases 853,486 641,878 Accumulated depreciation and amortization (895,807) (747.682) 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 A comparison of the book values of the current and preceding years indicates that they increased during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase Feedback ✓. A comparison of the total cost and accumulated depreciation reveals that Cannington purchased Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. Do you see an increase or decrease? Consider what could have affected the results. Consider what happens in business that affects assets and depreciation. 4 6
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