Calculate the decline in value of assets

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Penelope is a writer. She purchased a new sit-stand desk for $3,000 on 1 June. The desk is used 100% for work purposes. The Commissioner has determined that the effective life of a sit-stand desk is 3 years. Penelope uses the prime cost method to calculate the decline in value of her assets.

How much can Penelope claim for the decline in value of the desk in the year that she purchased it? You may assume that it is not a leap year and that the desk does not qualify for an immediate deduction.

Reference no: EM133266532

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