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: Line Item Description Current Year Preceding Year Land and buildings $632,810 $367,030 Machinery, equipment, and internal-use software 601,170 474,608 Other fixed assets 765,700 575,857 Accumulated depreciation and amortization (803,669) (670,779) 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 fill in the blank 1 of 3 . A comparison of the total cost and accumulated depreciation reveals that Cannington purchased _ million of additional fixed assets, which was offset by the additional depreciation expense of __ million taken during the current year.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 4CP

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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:

Line Item Description	Current Year	Preceding Year
Land and buildings	$632,810	$367,030
Machinery, equipment, and internal-use software	601,170	474,608
Other fixed assets	765,700	575,857
Accumulated depreciation and amortization	(803,669)	(670,779)

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 fill in the blank 1 of 3

. A comparison of the total cost and accumulated depreciation reveals that Cannington purchased ___ million of additional fixed assets, which was offset by the additional depreciation expense of ____ million taken during the current year.

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