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Book Value of Fixed Assets The following data (in millions) were adapted from recent annual reports...

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 $619,320 $359,206 Aircraft 588,354 464,490 Land 92,898 80,512 Buildings 749,377 563,581 Equipment 798,923 792,730 Construction in progress 12,386 6,193 Less accumulated depreciation (786,536) (656,479) a. Compute the book value of the fixed assets for years 1 and 2. Year 2 book value $ million Year 1 book value $ million

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Answer #1

An asset's book value is equal to its carrying value on the balance sheet, and companies calculate it netting the asset against its accumulated depreciation.

(In $ millions)

Name of Assets

Year 1

Year 2

Vehicals

359206

619320

Aircrafts

464490

588354

Land

80512

92898

Building

563581

749377

Equipment

792730

798923

Construction in progress

6193

12386

Total

2266712

2861258

Less :Accumulated Depreciation

656479

786536

Book Value of Fixed Assets

1610233

2074722

(Total Assets – Accumulated Dep)
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