The following data (in millions) were taken from recent annual reports of Kraft Foods Inc. Kraft Foods produces and sells packaged foods products throughout the world. Some of Kraft Foods’ well-known brands include Oreo, Nasbisco, Oscar Meyer, and Maxwell House coffee.

a. Compute the book value of the fixed assets for 2010 and 2009 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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Dec. 31, 2010 Land and land improvements Buildings and building equipment Machinery and equipment Construction in progress Accumulated depreciation Dec. 31, 2009 5 492 4,231 13,872 $ 795 4,934 16,147 1,154 (9,238) 828 (8,730)