A small company buys computer equipment for 200,000 pesos. After 2years, the value of the computer equipment is expected to be 120,000 pesos. For accounting purposes, the business uses linear depreciation to assess the value of the computer equipment at a given time. Straight line depreciation or linear depreciation is a common method of depreciation in business where the value of a fixed asset, like building and equipment, is reduced constantly over time. What will be the value of the computer equipment 4 years after it is bought?
