Book Value of Fixed Assets Obj. 6 Apple Inc. (AAPL) designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod), mobile phones (iPhone), and smartwatches (Apple 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 Apple: Property, plant, and equipment (in millions):     Current Year   Preceding Year Land and buildings   $ 20,041   $ 17,952 Machinery, equipment, and internal-use software   78,659   75,291 Other fixed assets   11,023   10,283 Accumulated depreciation and amortization   (70,283)   (66,760) Compute the book value of the fixed assets for the current year and the preceding year and explain he differences, if any. Would you normally expect Apple’s book value of fixed assets to increase or decrease during the year Why?

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...
icon
Related questions
Question

Book Value of Fixed Assets

Obj. 6

  • Apple Inc. (AAPL) designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod), mobile phones (iPhone), and smartwatches (Apple 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 Apple:

    Property, plant, and equipment (in millions):

        Current Year   Preceding Year
    Land and buildings   $ 20,041   $ 17,952
    Machinery, equipment, and internal-use software   78,659   75,291
    Other fixed assets   11,023   10,283
    Accumulated depreciation and amortization   (70,283)   (66,760)
    1. Compute the book value of the fixed assets for the current year and the preceding year and explain he differences, if any.

    2. Would you normally expect Apple’s book value of fixed assets to increase or decrease during the year Why?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning