Barry Ltd had the following balances related to insurance for the year ended 30 June 2021: Prepaid Insurance $26,000 (30 June 2020: $20,000), and insurance expense $17,000. The company income tax rate is 30%.

The amount that Barry Ltd can claim as a tax deduction for insurance for 30 June 2021 is:

Select one:

a.

$11,000

b.

$17,000

c.

$23,000

d.

$6,900