Local Motors Pty Ltd Is a Small Business Entity and a Manufacturer

Local Motors Pty Ltd is a small business entity and a manufacturer of engine motors for use in mining machinery. To help secure a lease of some valuable business premises, on 1 June 2020, Local Motors Pty Ltd decided to prepay 12-months rent in advance at a cost of $36,000. The lease commenced on the 1 June 2020. What is Local Motors Pty Ltd's deduction in respect of prepaid rent for the year ended 30 June 2020?

A) $36,000
B) $3,000
C) $18,000
D) $0