Gerald is a baker who carries on a business in Toowoomba where he sells directly to the public and local restaurants. Gerald is a small business entity. Gerald had the following outgoings in the year ended 30 June 2020:

• Gerald paid parking fines of $700 imposed by the local city council on his delivery truck. Gerald needed to park illegally to get close to customers when he is delivering bread.
• Gerald made a payment of $2,200 on 1 June 2020 for an insurance premium for his business. The period of the insurance cover is 1 June 2020 to 31 May 2021.
• Gerald accrued $750 for doubtful debts as he was worried some of the smaller cafes would not pay his invoices.

Based on these outgoings what amount can Gerald claim as allowable deductions under section 8-1 Income Tax Assessment Act 1997 for the year ended 30 June 2021?

Select one:

a. $3,650.

b. $2,950.

c. $2,200.

d. $1,450.

e. $nil.