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Question: mr larson paid 5000 to a local veterinary hospital and...

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Mr. Larson paid $5,000 to a local veterinary hospital and deducted the payment as an expense of his sole proprietorship (a trailer sales and repair business). The veterinarian provided medical care for his dog (who lived at the shop) who had recently been very ill.

Upon audit of the sole proprietorship's accounting records, the IRS agent is likely to disallow the deduction by applying the:

Business purpose doctrine

Assignment of income doctrine

Step transaction doctrine

Constructive payment doctrine

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