Perform the operation under the terms of employment contract

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Question: Jake is a medical doctor and he works for Healers Are Us, LLC. Jake agreed that he would work exclusively for the LLC. Jake is the sole owner of the LLC and no other doctor worked for the LLC. The LLC contracted to perform an operation for Rena for $50,000. The corporation paid Jake $20,000 to perform the operation under the terms of his employment contract. Jake's gross income is $20,000. Jake must recognize the $50,000 gross income because he provided the service. Jake must recognize $50,000 gross income since the patient obviously wanted him to perform the operation. The LLC's gross income is $30,000. Jake's gross income is $0.

Reference no: EM132213935

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