Question & Answer: Book value of fixed assets In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $19,231…..

EX 3-20 Book value of fixed assets OBJ. 2 In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $19,231 million and Accumulated Depreciation of $10,962 million. a. What was the book value of the fixed assets? b.Would the book value of Microsoft Corporations fixed assets normally ap- proximate their fair market values?

Book value of fixed assets In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $19,231 million and Accumulated Depreciation of $10,962 million. a. What was the book value of the fixed assets? b. Would the book value of Microsoft Corporation’s fixed assets normally approximate their fair market values?

Expert Answer

(a). Book value of the fixed assets : Gross value – Accumulated depreciation = $19,231 m – $10,962 m

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= $8,269 million.

(b) The fact whether the book value of Microsoft Corporation’s fixed assets normally approximate their fair market value depends on the policy of valuation of fixed assets being followed by the company.

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