Book Value of Fixed Assets The following data (in millions) were adapted from recent annual reports of
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Book Value of Fixed Assets
The following data (in millions) were adapted from recent annual reports of United Parcel Service, Inc. (UPS). UPS provides delivery and freight services throughout the world.
| Year 2 | Year 1 | |||
| Vehicles | $743,040 | $430,963 | ||
| Aircraft | 705,888 | 557,280 | ||
| Land | 111,456 | 96,595 | ||
| Building and improvements | 899,078 | 676,166 | ||
| Equipment | 958,522 | 951,091 | ||
| Construction in progress | 14,861 | 7,430 | ||
| Less accumulated depreciation | (943,661) | (787,622) |
a. Compute the book value of the fixed assets for years 1 and 2.
| Year 2 book value | $___________million |
| Year 1 book value | $___________million |
b. UPS appears to have (expanded or reduced) its operations in year 2 from (sales or purchases) of fixed assets. This is typical of (slowly or rapidly) growing companies.
Expert Answer:
a To compute the book value of the fixed assets for years 1 and 2 we need to subtract the accumulate... View the full answer
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