The following data were taken from recent annual reports of Interstate Bakeries Corporation (IBC). Interstate Bakeries produces, distributes, and sells fresh bakery products nationwide through supermarkets, convenience stores, and its 67 bakeries and 1,500 thrift stores.

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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Current Year $ 426,322,000 Machinery and equipment1,051,861,000 633,178,000 Preceding Year 418,928,000 1,038,323,000 582,941,000 Land and buildings Accumulated depreciation