FAB Publishing Ltd carries on a publishing business and owns a magazine that it publishes monthly. It had the following expenditure during the current income tax year:

• In a recent magazine article one of the stories made a defamatory remark about a well-known movie star and the company had to pay $50,000 compensation to the movie star.
• The company paid $35,000 to a managing director to encourage him to terminate his contract of employment early, because he was performing unsatisfactorily.
• $12,000 was stolen by thieves from one of the company s safes and the money was not recovered. The money had been collected from and recorded as sales of the magazine.

Based on the above losses or outgoings, what amount will be deductible under section 8-1 of the ITAA97?

	$50,000
	$85,000
	$12,000
	$97,000
	$47,000