On January 1 2015 Miraz Company purchased furniture for $7800. 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 2016 is

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The furniture is depreciated over 3 years with no salvage value, meaning it loses 1/3 of its value annually. After 2 years (by the end of 2016), it would have depreciated by 2/3 of its original value ($7800), leaving 1/3 of its value, which is $2600.

On January 1 2015 Miraz Company Purchased Furniture for $7800