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:

Social Support

Various forms of assistance and encouragement provided by others.

Delusion

A strongly held belief that is clearly false or irrational but is held with deep conviction despite evidence to the contrary.

Hallucination

A hallucination is a perception in the absence of external stimulus that has qualities of real perception, often involving seeing, hearing, or feeling something that isn't there.

Compulsion

An urge or force that drives an individual to perform repetitive behaviors or rituals, often as a way of relieving anxiety.