I will just include here 3 small factors.
Banish is an armor type, Ethreal. It increases spell damage the same way fortified armor takes extra damage from siege. This is not linked at all to spell damage reduction or amplification from anything else.
The 20% that heroes have as a base is not added into the equation for anything else; this again, is an armor type deal. It works the same way as banish. When you are hit with banish, this 20% is also taken away, because your armor type is changed.
the 50% on an item does stack with the 20% base your hero has. This is how it works: you only take 80% spell reduction normally. That 80% is then cut by 50%; which is actually 40% from the 80% (50% of 80 is 40). Making your total spell reduction 60%.
I actually believe that mage killer aura mightttttt override weak C; not positive. needs to be tested. They might also just cancel each other out.