Answer:
No information given regarding depreciation method Therefore, it is assume P.T Scope Company will use the Straight line Depreciation Method in order to get book value on Dec 31, 2012 and Book value computer system is $1080.
Explanation:
Using Straight line depreciation method the value of Computer system at Dec 31, 2012 is $1080
Depreciation = (cost of asset - Salvage value) / Useful life of asset
Note: In straight line depreciation method the depreciation expense remain constant as it based on the original cost of assets.
Depreciation expense on Dec 31, 2011 = ($3240 - 0 ) / 3 = $1080
Book value on Dec 31, 2011 = $3240 - $1080 = $2160
Depreciation expense on Dec 31, 2012 = ($3240 - 0 ) / 3 = $1080
Book value on Dec 31, 2012 = $2160 - $1080 = $1080
Straight line depreciation method calculate book value based on the original cost and book value is calculated using Year starting value minus Depreciation expense. Hence, Book value reduce as asset continue to use in business until it reaches to zero or salvage value.
