Problem 4-11 (LO. 1) The roof of your corporation's office building recently suffered some damage as the result of a storm. You, the president of the corporation, are negotiating with a carpenter who has quoted two prices for the repair work: $500 if you pay in cash ("Folding money") and $700 if you pay by check. The carpenter observes that the IRS can more readily discover his receipt of a check. Thus, he hints that he will report the receipt of the check (but not the cash). The carpenter holds another full-time job and will do the work after hours and on the weekend. He comments that he should be allowed to keep all he earns after regular working hours. Identify whether the following statements are "True" or "False" regarding the carpenter's proposal. a. When the income is earned (i.e., after regular working hours) has nothing to do with measuring the taxpayer's ability to pay. b. If you pay in cash, you should obtain a receipt for the full amount paid from the carpenter as proof of payment. c. By paying the carpenter in cash, with the knowledge the cash will not be reported, you become party to the carpenter's tax fraud. d. By performing the work after hours and on the weekend, the carpenter can avoid claiming the funds as income