hington 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 Land and buildings $715,660 $415,083 Machinery, equipment, and internal-use software 679,877 536,745 Other fixed assets 865,949 651,251 Accumulated depreciation and amortization (908,888) (758,600) 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) A comparison of the book values of the current and preceding years indicates that they A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $ million of additional fixed assets, which was offset by the additional million taken during the current year.
hington 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 Land and buildings $715,660 $415,083 Machinery, equipment, and internal-use software 679,877 536,745 Other fixed assets 865,949 651,251 Accumulated depreciation and amortization (908,888) (758,600) 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) A comparison of the book values of the current and preceding years indicates that they A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $ million of additional fixed assets, which was offset by the additional million taken during the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject :- Accounting
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):
Current Year Preceding Year
$715,660
$415,083
679,877
536,745
865,949
651,251
Accumulated depreciation and amortization
(908,888)
(758,600)
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
accumulated depreciation reveals that Cannington purchased $
depreciation expense of $
million taken during the current year.
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
million of additional fixed assets, which was offset by the additional
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