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 wid1 related accessories and services, including online distribution of d1ird-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 $ 4,863 $ 3,309 Machinery, equipment, and internal-use software 29,639 21,242 Other fixed assets 4,513 3,968 Accumulated depreciation and amortization (18,391) (11,922) 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

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Solutions

Chapter
Section
Chapter 9, Problem 9.21EX
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 wid1 related accessories and services, including online distribution of d1ird-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 $ 4,863 $ 3,309
Machinery, equipment, and internal-use software 29,639 21,242
Other fixed assets 4,513 3,968
Accumulated depreciation and amortization (18,391) (11,922)

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 9 Solutions

Financial & Managerial Accounting
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