Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Textbook Question
Chapter 7, Problem 7.18E
Book value of fixed assets
Apple. Inc., designs, manufactures, and markets personal computers (iPad’) and related software. Apple also manufactures and distributes music players (iPod’) along with related accessories and services, including the online distribution of third-party music. The following information was adapted from a recent annual report of Apple:
Property. Plant, and Equipment (In millions):
Compute the book value of the fixed asset for Years I and 2 and explain the differences, if any.
b. Would you normally expect the 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
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?
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…
Chapter 7 Solutions
Survey of Accounting (Accounting I)
Ch. 7 - Which of the following expenditures incurred in...Ch. 7 - What is the amount of depreciation, using the...Ch. 7 - An example of an accelerated depreciation method...Ch. 7 - Prob. 4SEQCh. 7 - Prob. 5SEQCh. 7 - Which of the following qualities are...Ch. 7 - Prob. 2CDQCh. 7 - Prob. 3CDQCh. 7 - Prob. 4CDQCh. 7 - Are the amounts at which fixed assets are reported...
Ch. 7 - a. Does the recognition of depreciation in the...Ch. 7 - Backyard Company purchased a machine that has a...Ch. 7 - Is it necessary for a business to use the same...Ch. 7 - Prob. 9CDQCh. 7 - Prob. 10CDQCh. 7 - Prob. 11CDQCh. 7 - Prob. 12CDQCh. 7 - Prob. 13CDQCh. 7 - Prob. 14CDQCh. 7 - Prob. 15CDQCh. 7 - Costs of acquiring fixed assets Summer Wilks owns...Ch. 7 - Determine cost of land Snowy Ridges Ski Co. has...Ch. 7 - Determine cost of land Four Corners Delivery...Ch. 7 - Nature of depreciation Custer Construction Co....Ch. 7 - Straight-line depreciation rates Convert each of...Ch. 7 - Straight-line depreciation A refrigerator used by...Ch. 7 - Depreciation by two methods A Caterpillar tractor...Ch. 7 - Depreciation by two methods Equipment acquired at...Ch. 7 - Partial-year depreciation Sandblasting equipment...Ch. 7 - Capital and revenue expenditures About Time...Ch. 7 - Capital and revenue expenditures Dehra Bundy owns...Ch. 7 - Prob. 7.12ECh. 7 - Sale of asset Equipment acquired on January 9,...Ch. 7 - Disposal of fixed asset Equipment acquired on...Ch. 7 - Recording depletion MacLean Mining Co. acquired...Ch. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Book value of fixed assets Apple. Inc., designs,...Ch. 7 - Balance sheet presentation List the errors you...Ch. 7 - Prob. 7.1.1PCh. 7 - Allocate payments and receipts to fixed asset...Ch. 7 - Prob. 7.1.3PCh. 7 - Compare three depreciation methods Bayside...Ch. 7 - Depreciation by two methods; partial years Knife...Ch. 7 - Depreciation by two methods; sale of fixed asset...Ch. 7 - Depreciation by two methods; sale of fixed asset...Ch. 7 - Depreciation by two methods; sale of fixed asset...Ch. 7 - Amortization and depletion entries Data related to...Ch. 7 - Prob. 7.5.2PCh. 7 - Prob. 7.1MBACh. 7 - Prob. 7.2.1MBACh. 7 - Prob. 7.2.2MBACh. 7 - Prob. 7.3.1MBACh. 7 - Prob. 7.3.2MBACh. 7 - Prob. 7.3.3MBACh. 7 - Prob. 7.3.4MBACh. 7 - Prob. 7.4MBACh. 7 - Prob. 7.5.1MBACh. 7 - Asset turnover United Continental Holdings. Inc.,...Ch. 7 - Prob. 7.6.1MBACh. 7 - Prob. 7.6.2MBACh. 7 - Prob. 7.7.1MBACh. 7 - Prob. 7.7.2MBACh. 7 - Prob. 7.8.1MBACh. 7 - Prob. 7.8.2MBACh. 7 - Prob. 7.9.1MBACh. 7 - Prob. 7.9.2MBACh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3.1CCh. 7 - Prob. 7.3.2CCh. 7 - Effect of depreciation on net income Einstein...Ch. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.6C
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