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.

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.