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faust18 [17]
3 years ago
10

Mike contracted with Kram Company, Mike's controlled corporation. Mike was a medical doctor and the contract provided that he wo

uld 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.
Business
1 answer:
ira [324]3 years ago
5 0

Answer:

a. Mike's gross income is $6,500.

Explanation:

Given that

As mike contracted with Kram company, which he worked for the corporation that reflect he is an employee of Kram company

Since the corporation paid him $6,500 for performing the operation under the terms and conditions of the employment contract. So, it would be included in his gross income or we can say it is his gross income of $6,500

While the other amount shows the gross income for kram company i.e $6,500 as the corroboration perform for Rosa

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The required number of Kanban containers required by Jones Electric Motor can be calculated thus :

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<h3>What receivable means?</h3>

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Notes receivable typically have a debit balance. Debits increase notes receivable and credits decrease them, just like with other assets.

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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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