Taxpayer Ltd carries on a publishing business and owns a magazine that it publishes monthly. This company incurred the following expenditure during the year ended 30 June 2023: In a recent magazine article one of the stories made a defamatory remark about a well-known artist and the company had to pay $50,000 compensation to the artist. The company paid $20,000 to a managing director to encourage him to terminate his contract of employment early, because his performance was unsatisfactory. $10,000 was stolen by thieves from one of the companys 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 s 8-1?

Select one:

a.

$50,000

b.

$40,000

c.

$80,000

d.

$0

e.

$90,000