Using the prime cost method, calculate the depreciation deduction for a depreciating asset purchased 55 days into the financial year. The asset was purchased for $150,000 and has an economic life of three years.

Show your workings.

Hint

1. Calculate the annual depreciation expense: Cost of asset / Economic life
2. Prorate the depreciation expense based on the ownership period: Number of days remaining in year after asset was purchased / Total days in a year
3. Calculate the depreciation deduction: Annual depreciation expense X Ownership period