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 $707,150 $410,147 Machinery, equipment, and internal-use software 671,793 530,363 Office furniture and equipment 106,073 91,930 Other fixed assets related to leases 855,652 643,507 Accumulated depreciation and amortization (898,081) (749,579) 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

Respuesta :

The book value of the fixed assets for the current year and the preceding year is: $1,442,587; $926,368.

Book value

Current year book value

Land and buildings $707,150

Machinery, equipment, and internal-use software $671,793

Office furniture and equipment $106,073

Other fixed assets related to leases $855,652

Less Accumulated depreciation and amortization ($898,081)

Book value $1,442,587

Preceding year book value

Land and buildings $410,147

Machinery, equipment, and internal-use software  $530,363

Office furniture and equipment $91,930

Other fixed assets related to leases $643,507

Less Accumulated depreciation and amortization  ($749,579)

Book value $926,368

Therefore the book value of the fixed assets for the current year and the preceding year is: $1,442,587; $926,368.

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