In auditing the Philbin Corporation’s repair expense account, Sara finds a $28,000 entry. Since the amount is so large, she obtains supporting documentation. The invoice lists the Fradin Roofing Company as providing the service, but no description of the work the company performed is attached to the invoice. However, a notation on the check says ‘‘office roof.’’

Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.