XYZ (Pty) Ltd commenced business on 1st January 2014. On that day, XYZ (Pty) Ltd bought equipment on credit from CCC equipment (Pty) Ltd at P85 000. The equipment will be used for 5 years and the estimated value at the end of the 5 years is P25, 000. Calculate the depreciation for the equipment at 10% for the first three years using the reducing balance method.