Chapter 9, Problem 9.21EX

a.

To determine

Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is, acquired by a company to be used in its business activities, for generating revenue. Examples of fixed assets are Plant, Property, Equipment, Land, and Buildings.

To compute: the book value of the fixed assets for the current year and the preceding year.

b.

To determine

To explain: whether it is normally expected that Company A’s book value of fixed assets would increase or decrease during the year.