Solved: Deduction as ordinary and necessary business expenditure, Accounting Basics

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Deduction as ordinary and necessary business expenditure

Problem:

Joshua hired his brothers firm to provide accounting services, to his business. During the current year, Michael paid his brothers 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?

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Accounting Basics: Deduction as ordinary and necessary business expenditure

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