Question

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: $600 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. Evaluate what you should do.


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  • CreatedMay 25, 2015
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