The Following Information Was Taken from a Recent Annual Report

question 235

Essay

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?

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Definitions:

Income Effect

The change in an individual's or household's consumption resulting from a change in real income, influencing purchasing power.

Leisure

The time spent away from work and essential activities, where one is free to engage in activities of choice.

Uber

A multinational ride-hailing company that offers services including peer-to-peer ridesharing, ride service hailing, and a food delivery app.

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.