Mike Contracted with Kram Company, Mike's Controlled Corporation

question 53

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 the above.

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Definitions:

Place Theory

A theory in hearing that suggests different areas of the cochlea are activated by different frequencies of sound, helping to explain pitch perception.

Fast Pathway

refers to the rapid processing route in the brain's neural system that allows for quick responses to stimuli, often associated with instinctual or automatic actions.

Sharp Pain

A sudden, intense, and often brief pain that is clearly felt and can be pinpointed to a specific location in the body.

External Pain

Pain that originates from outside the body, typically caused by external physical injury or stimulus.