On January 1, 2011, P.T.Scope Company purchased a computer system for $3,240.The company expects to use the system for 3 years.The asset has no salvage value.The book value of the system at December 31, 2012 is

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The computer system is depreciated over 3 years with no salvage value. Using straight-line depreciation, the annual depreciation expense is $3,240 / 3 = $1,080. After two years (2011 and 2012), the accumulated depreciation is $1,080 * 2 = $2,160. Therefore, the book value at December 31, 2012, is $3,240 - $2,160 = $1,080.