Apple Computer, Inc., designs, manufactures, and markets personal computers 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 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 the book value of fixed assets to increase or decrease during theyear?

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Property, Plant, and Equipment (in millions): Preceding Year Current Year Land and buildings $626 595 94 760 $361 470 81 569 664 Machinery, equipment, and internal-use software Office furniture and equipment Other fixed assets related to leases Accumulated depreciation and amortization 794