Evil Empire Corporation, in addition to running a successful and well funded baseball tam, owns a factory that produces sports apparel. The CEO, Stein, and the CFO, Brenner, with board approval, decided that it would be cost efficient not to  install the required filtered technology n the factory's smokestacks, since the omission would probably not be detected. However, Evil Empire was caught, and the state f New York commenced criminal action  against Evil Empire, Stein, Brenner, and all seven of the directors. All of the defendants pled solo contendere. Evil Empire paid the fines, totaling $500,000, that were levied against the company, including $25,000 in fines levied against each of the defendant employees and directors. Should Stein, Brenner, and the directors recognize any gross income?

Answer rating: 100% (QA)

Yes Stein Brenner and the directors should recognize gross income from the fines paid by Evil Empire ... View the full answer