What is the tax formula?

Select one:

a.

E = mc²

b.

Assets = Liabilities + Owners Equity

c.

Assessable Income = Taxable Income Allowable Deductions

d.

Taxable Income = Assessable Income Allowable Deductions

Sam, a resident individual for Australia for income tax purposes, has assessable income of $77,000 for the current income year. Sam has deductions of $500 and is supporting an elderly, invalid parent. The parent has $500 in income for the year from a cash dividend received during the tax year. Calculate Sams taxable income.

Select one:

a.

$77,000

b.

$77,500

c.

$500

d.

$76,500