TAX EV ACT 04204
BTCA
SSION OBJECTIVES:
the end of this session the student should be able to identify various reason
avoidance and tax evasion. Specifically to:
Define tax evasion and avoidance
Provide various reasons of tax evasion and avoidance
Palsused
evasion
vasion is a deliberate act by an individual, company, firm, trust o
es to mislead, misinform or otherwise mis-state the tax liability to
ities by breaking the law.
Keeloghat
fraudulent and intentional attempt to escape payment of taxes in

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer