The following information was taken from a recent annual report of Harrison Company (in millions): $\begin{array}{|l|r|r|}
\hline& \text { Current Year } & \text { Preceding Year } \
\hline \text { Land and buildings } & \$ 726 & \$ 361 \
\hline \text { Machinery, equipment, and internal -use software } & 595 & 470 \\hline \text { Office furniture and equipment } & 94 & 81 \
\hline \text { Other fixed assets rel ated to leases } & 760 & 569 \
\hline \text { Accumulated depreciation and amortization } & 894 & 644 \
\hline
\end{array}$
Required: (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 the book value of fixed assets to increase or decrease during the year?

Question

The following information was taken from a recent annual report of Harrison Company (in millions): $\begin{array}{|l|r|r|} 
\hline& \text { Current Year } & \text { Preceding Year } \
\hline \text { Land and buildings } & \$ 726 & \$ 361 \
\hline \text { Machinery, equipment, and internal -use software } & 595 & 470 \\hline \text { Office furniture and equipment } & 94 & 81 \
\hline \text { Other fixed assets rel ated to leases } & 760 & 569 \
\hline \text { Accumulated depreciation and amortization } & 894 & 644 \
\hline
\end{array}$ ​
Required: (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 the book value of fixed assets to increase or decrease during the year?

Quizplus · Accepted Answer

The Answer of The following information was taken from a recent annual report of Harrison Company (in millions): $\begin{array}{|l|r|r|} 
\hline& \text { Current Year } & \text { Preceding Year } \
\hline \text { Land and buildings } & \$ 726 & \$ 361 \
\hline \text { Machinery, equipment, and internal -use software } & 595 & 470 \\hline \text { Office furniture and equipment } & 94 & 81 \
\hline \text { Other fixed assets rel ated to leases } & 760 & 569 \
\hline \text { Accumulated depreciation and amortization } & 894 & 644 \
\hline
\end{array}$ ​
Required: (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 the book value of fixed assets to increase or decrease during the year?

The Following Information Was Taken from a Recent Annual Report