Mike Contracted with Kram Company,Mike's Controlled Corporation

question 42

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 $2,400.The corporation paid Mike $2,000 to perform the operation under the terms of his employment contract.

• A)Mike's gross income is $2,000.
• B)Mike must recognize the $2,400 gross income because he provided the service.
• C)Mike must recognize $2,400 gross income since the patient obviously wanted him to perform the operation.
• D)The Kram Company corporation's gross income is $400.
• E)None of the above.

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Definitions:

Reaction Speed

The rate at which a chemical reaction proceeds, often measured in terms of concentration change per unit time.

Personal Construct Theory

A psychological theory developed by George Kelly, proposing that individuals use personal constructs (bipolar mental templates) to understand and interpret events and relationships in their life.

Kelly's Theory

A psychological theory developed by George Kelly, emphasizing personal constructs as the primary way individuals understand the world.

Psychosocial Stages

Refers to Erik Erikson's theory which outlines eight stages of psychological development that individuals pass through from infancy to adulthood, each characterized by a different psychological challenge or conflict.