On January 1, 2014, Doolittle Company purchased furniture for $7,560. The company expects to use the furniture for 3 years. The asset has no salvage value. The book value of the furniture at December 31, 2015 is

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Since the furniture is expected to be used for 3 years with no salvage value, it has a useful life of 3 years. The depreciation expense for each year would be $7,560/3 = $2,520. Since we are calculating the book value at the end of 2015 (which is the end of the 2nd year), the accumulated depreciation up to that point would be $2,520 x 2 = $5,040. Therefore, the book value at December 31, 2015 is $7,560 - $5,040 = $2,520.

On January 1, 2014, Doolittle Company Purchased Furniture for $7,560