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 63

Manny hired his brother's firm to provide accounting services to his business.During the current year, Manny paid his brother's firm $82,000 for services even though other firms were willing to provide the same services for $40,000.How much of this expenditure, if any, is deductible as an ordinary and necessary business expenditure?