ompute the book value of the fixed assets for years 1 and 2. Year 2 book value $fill in the blank 1 million Year 1 book value $fill in the blank 2 million
ompute the book value of the fixed assets for years 1 and 2. Year 2 book value $fill in the blank 1 million Year 1 book value $fill in the blank 2 million
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Book Value of Fixed Assets
The following data (in millions) were adapted from recent annual reports of United Parcel Service, Inc. (UPS). UPS provides delivery and freight services throughout the world.
| Year 2 | Year 1 | |||
| Vehicles | $518,460 | $300,707 | ||
| Aircraft | 492,537 | 388,845 | ||
| Land | 77,769 | 67,400 | ||
| Buildings | 627,337 | 471,799 | ||
| Equipment | 668,813 | 663,629 | ||
| Construction in progress | 10,369 | 5,185 | ||
| Less accumulated |
(658,444) | (549,568) |
a. Compute the book value of the fixed assets for years 1 and 2.
| Year 2 book value | $fill in the blank 1 million |
| Year 1 book value | $fill in the blank 2 million |
b. UPS appears to have expanded its operations in year 2 from purchases of fixed assets. This is typical of rapidly growing companies.
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