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 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 in the blank 5 million taken during the current year. b. Would you normally expect Cannington’s book value of fixed assets to increase or decrease during the year?
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 | ||
| (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 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 in the blank 5 million taken during the current year.
b. Would you normally expect Cannington’s book value of fixed assets to increase or decrease during the year?
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