John is a doctor who works as a sole practitioner, operating through a rented room in a medical clinic.

During the 2021 income year he paid $16,000 for 12 months rent in office rental fees in one instalment, as well as $1,500 on a new sofa for his office purchased in July 2020. Wishing to improve his management skills, in January 2021 he enrols in an MBA course at the local university at a cost of $5.000 per semester.

Assuming John does not qualify for the small business entities concessions of Subdiv 328-D ITAA97, how much is he entitled to claim as a deduction in the current year?

a.

$5,000

b.

$6,500

c.

$16,000

d.

$21,000

e.

$18,000

f.

$22,500