ACCOUNTING,CHAP.1-13
26th Edition
ISBN: 9781305088412
Author: WARREN
Publisher: CENGAGE L
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Chapter 10, Problem 10.21EX
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):
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?
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Book Value of Fixed Assets
Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries:
Property, Plant, and Equipment (in millions):
Current Year
Preceding Year
Land and buildings
$519,320
$301,206
Machinery, equipment, and internal-use software
493,354
389,490
Office furniture and equipment
77,898
67,512
Other fixed assets related to leases
628,377
472,581
Accumulated depreciation and amortization
(659,536)
(550,479)
a. Compute the book value of the fixed assets for the current year and the preceding year.
Current year book value
Preceding year book value
b. Would you normally expect the book value of fixed assets to increase or decrease during the year?
Book Value of Fixed Assets
Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a
recent annual report of Cannington:
Property, Plant, and Equipment (in millions):
Preceding Year
$291,415
376,830
457,220
(532,586)
Current Year
Land and buildings
$502,440
Machinery, equipment, and internal-use software
477,318
Other fixed assets related to leases
607,952
Accumulated depreciation and amortization
(638,099)
a. Compute the book value of the fixed assets for the current year and the preceding year.
Current year book value
Preceding year book value i
A comparison of the book values of the current and preceding years indicates that they i
and accumulated depreciation reveals that Cannington purchased
additional depreciation expense of $
b. Would you normally expect the book value of fixed assets to increase or decrease during the year?
A comparison of the total cost
million of additional fixed assets, which was…
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:
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?
Chapter 10 Solutions
ACCOUNTING,CHAP.1-13
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