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Book value of fixed assets Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) 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 $ 6,956 $ 4,863 Machinery, equipment, and internal-use software 37,038 29,639 Other fixed assets 5,263 4,513 Accumulated depreciation and amortization (26,786) (18,391) a. Compute the book value of the fixed assets for the current year and the preceding year and explain the differences, if any. b. Would you normally expect Apple's book value of fixed assets to increase or decrease during the year? Why?

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 10, Problem 10.21EX
Textbook Problem

Book value of fixed assets

Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) 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 $ 6,956 $ 4,863
Machinery, equipment, and internal-use software 37,038 29,639
Other fixed assets 5,263 4,513
Accumulated depreciation and amortization (26,786) (18,391)

a. Compute the book value of the fixed assets for the current year and the preceding year and explain the differences, if any.

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

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Chapter 10 Solutions

Accounting
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