ve Answer Michael an architect has a contract with Corporati

ve Answer Michael, an architect, has a contract with Corporation X. Corporation X is Michael\'s controlled corporation The contract required that Michael works only for Corporation X. He is the only architect the corporation employes. Corporation X paid Michael to do a job for Haynes Inc. and billed Haynes $2,000. Michael received $800 for his services from the corporation based on his rate of pay per his contract. O a. Michael\'s gross income is $800. O b. Michael must recognize the $2,000 gross income because he provided the service. Oc. Mchael must recognize $2,000 gross income since Haynes Inc. obviously wanted him to do the drawings. d. Corporation X\'s gross income is $1,200.

Solution

Michael\'s work for corporation x , and michael will get the revenue as per his rate and as per contract.

So the Michael will get only $ 800 against his revenue and Corporation X bille to haynes for $ 2,000 so income of Muchael is only $ 800.

Answer = Option 1 = Michel\'s Gross income is $ 800