3. When reviewing the tax return of the X Company for the year 2021, the auditors found that $200,000 of capital gains from the sale of land was deliberately recorded as a debit to a suspense account and credited to land.

Which of the following statements is true?

1. This transaction is an example of tax evasion
2. This transaction is an example of tax evasion
3. This transaction is an example of tax planning
4. This transaction is an example of gross negligence.