QUESTION 3 An asset is purchased at a cost of P110 000 on 1 January 2016. The asset has a useful life of 10 years. The company expects to sell the asset after 5 years for an estimated P30 000 before taking into consideration the expected costs of disposal of P20 000. The straight line method of depreciation is to be used for this asset. Calculate the depreciation for the year ended 31 October 2016. (5 marks)