McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 13

Jake is a professional dog trainer who purchases and trains dogs for use by law enforcement agencies.Last year Jake purchased 500 bags of dog food from a large pet food company at an average cost of $30 per bag.This year, however, Jake purchased 500 bags of dog food from a local pet food company at an average cost of $45 per bag.Under what circumstances would the IRS likely challenge the cost Jake's dog food as unreasonable?