Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 10, Problem 21E
a.
To determine
Compute the book value of the fixed assets for the current year and the preceding year.
b.
To determine
Explain whether it is normally expected that Company A’s book value of fixed assets would increase or decrease during the year.
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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:
Property, Plant, and Equipment (in millions):
Current Year
Preceding Year
Land and buildings
$494,500
$286,810
Machinery, equipment, and internal-use software
469,775
370,875
Other fixed assets
598,345
449,995
Accumulated depreciation and amortization
(628,015)
(524,170)
a. Compute the book value of the fixed assets for the current year and the preceding year.
Current year book value (in millions)
$fill in the blank 1
Preceding year book value (in millions)
$fill in the blank 2
A comparison of the…
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
$736,180
$426,984
Machinery, equipment, and internal-use software
699,371
552,135
Office furniture and equipment
110,427
95,703
Other fixed assets related to leases
890,778
669,924
Accumulated depreciation and amortization
(934,949)
(780,351)
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?
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):
Current Year
Preceding Year
Land and buildings
$705,360
$409,109
Machinery, equipment, and internal-use software
670,092
529,020
Other fixed assets related to leases
853,486
641,878
Accumulated depreciation and amortization
(895,807)
(747,682)
a. Compute the book value of the fixed assets for the current year and the preceding year.
Current year book value
$fill in the blank 1
Preceding year book value
$fill in the blank 2
A comparison of the book values of the current and preceding years indicates that they
. A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $fill in the blank 4 million of additional fixed assets, which was offset by the additional depreciation expense of $fill…
Chapter 10 Solutions
Financial Accounting
Ch. 10 - ONeil Office Supplies has a fleet of automobiles...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Keyser Company purchased a machine that has a...Ch. 10 - Is it necessary for a business to use the same...Ch. 10 - a. Under what conditions is the use of the...Ch. 10 - Prob. 7DQCh. 10 - Immediately after a used truck is acquired, a new...Ch. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - Equipment acquired at the beginning of the year at...Ch. 10 - A truck acquired at a cost of 69,000 has an...Ch. 10 - A tractor acquired at a cost of 420,000 has an...Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - Equipment with a cost of 180,000 has an estimated...Ch. 10 - A truck with a cost of 82,000 has an estimated...Ch. 10 - On February 14, Garcia Associates Co. paid 2,300...Ch. 10 - On August 7, Green River Inflatables Co. paid...Ch. 10 - Equipment was acquired at the beginning of the...Ch. 10 - Equipment was acquired at the beginning of the...Ch. 10 - Prob. 7PEACh. 10 - Prob. 7PEBCh. 10 - On December 31, it was estimated that goodwill of...Ch. 10 - On December 31, it was estimated that goodwill of...Ch. 10 - Prob. 9PEACh. 10 - Prob. 9PEBCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Tri-City Ironworks Co. reported 44,500,000 for...Ch. 10 - Convert each of the following estimates of useful...Ch. 10 - A refrigerator used by a wholesale warehouse has a...Ch. 10 - A diesel-powered tractor with a cost of 90,000 and...Ch. 10 - Prior to adjustment at the end of the year, the...Ch. 10 - A Kubota tractor acquired on January 8 at a cost...Ch. 10 - A storage tank acquired at the beginning of the...Ch. 10 - Equipment acquired at a cost of 105,000 has an...Ch. 10 - A building with a cost of 1,200,000 has an...Ch. 10 - US Freight Lines Co. incurred the following costs...Ch. 10 - Jackie Fox owns and operates Platinum Transport...Ch. 10 - Quality Move Company made the following...Ch. 10 - Willow Creek Company purchased and installed...Ch. 10 - Equipment acquired on January 8 at a cost of...Ch. 10 - Equipment acquired on January 6 at a cost of...Ch. 10 - Prob. 19ECh. 10 - Kleen Company acquired patent rights on January 10...Ch. 10 - Prob. 21ECh. 10 - List the errors you find in the following partial...Ch. 10 - Amazon.com, Inc. is the worlds leading Internet...Ch. 10 - Verizon Communications Inc. is a major...Ch. 10 - FedEx Corporation and United Parcel Service, Inc....Ch. 10 - The following table shows the sales and average...Ch. 10 - Prob. 27ECh. 10 - Prob. 28ECh. 10 - Prob. 29ECh. 10 - On October 1, Bentley Delivery Services acquired a...Ch. 10 - The following payments and receipts are related to...Ch. 10 - Dexter Industries purchased packaging equipment on...Ch. 10 - Perdue Company purchased equipment on April 1 for...Ch. 10 - New lithographic equipment, acquired at a cost of...Ch. 10 - The following transactions and adjusting entries...Ch. 10 - Prob. 6PACh. 10 - Prob. 1PBCh. 10 - Waylander Coatings Company purchased waterproofing...Ch. 10 - Layton Company purchased tool sharpening equipment...Ch. 10 - New tire retreading equipment, acquired at a cost...Ch. 10 - Prob. 5PBCh. 10 - Prob. 6PBCh. 10 - Prob. 1CPCh. 10 - Prob. 2CPCh. 10 - Godwin Co. owns three delivery trucks. Details for...Ch. 10 - The following is an excerpt from a conversation...
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