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?

ordinary expense - 0

necessary expense - 0

Explanation:

Ordinary expense is an expense arising from an action that is ordinarily to be expected of one in the taxpayer's position. It is one that is common and accepted in your trade and or business.

Necessary expense - is one that is helpful and appropriate for your trade or business. It does not need to be indispensable to be considered necessary expense.

Accounting service is considered necessary for a business to survive but Manny paid his brother large amount of money for his brother even though there is cheaper same service outside.  

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy