On January 1, 2021, Doolittle Company purchased furniture for $7,560.The company expects to use the furniture for three years.The asset has no salvage value.The book value of the furniture at December 31, 2022 is

Question

Quizplus · Accepted Answer

The furniture has a useful life of 3 years and no salvage value, therefore it will be depreciated straight-line over 3 years, which is $7,560 / 3 = $2,520 per year.
To find the book value at the end of 2022, we need to subtract 2 years of depreciation from the original cost of the furniture:
$7,560 - (2 x $2,520) = $2,520
Therefore, the book value of the furniture at December 31, 2022 is $2,520.

On January 1, 2021, Doolittle Company Purchased Furniture for $7,560