Mike Contracted with Kram Company, Mike's Controlled Corporation

question 84

Multiple Choice

Mike contracted with Kram Company, Mike's controlled corporation. Mike was a medical doctor and the contract provided that he would work exclusively for the corporation. No other doctor worked for the corporation. The corporation contracted to perform an operation for Rosa for $8,000. The corporation paid Mike $6,500 to perform the operation under the terms of his employment contract.

• A) Mike's gross income is $6,500.
• B) Mike must recognize the $8,000 gross income because he provided the service.
• C) Mike must recognize $8,000 gross income since the patient obviously wanted him to perform the operation.
• D) The Kram Company corporation's gross income is $1,500.
• E) None of these.

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Definitions:

Nociceptors

Sensory receptors that detect signals from damaged tissue and can induce the perception of pain.

Olfactory Receptors

Specialized sensory cells located in the nasal cavity that are responsible for detecting odors and thereby enabling the sense of smell.

Cochlea

is the spiral-shaped, auditory portion of the inner ear, essential for converting sound waves into nerve impulses.

McGurk Effect

A phenomenon that illustrates the interaction between hearing and vision in speech perception, where visual cues can alter what we believe we hear.