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Details of Nicks expenses are as follows: Expense ($) Personal superannuation...

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Accounting

Details of Nicks expenses are as follows:

Expense ($)
Personal superannuation paid by Nick 6,700
Wages for staff 80,000
Superannuation for staff 7,600
Discharge of mortgage for his property loan of which 50% relates to his rental properties 400
Interest on loans used to purchase rental properties 23,000
Electricity for a rental property 2,300
Rates and taxes for a rental property 3,000
Water for a rental property which the tenants repaid 800

Based on the above facts and relevant tax laws, what are the allowable deductions in relation to Nicks business income only? (hint: remember that Nicks business income and expenses will be recorded in a separate schedule within Nicks personal income tax return)

A Superannuation expenses of $7,600 & wages of $80,000
B Superannuation expenses of $14,300 & wages of $80,000
C Superannuation expenses of $6,700
D Superannuation expenses of $6,700 & wages of $80,000

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