Surf and Turf Restaurant is a large steak restaurant in the suburbs of Chicago. Don OShannon, an

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Surf and Turf Restaurant is a large steak restaurant in the suburbs of Chicago. Don O’Shannon, an accounting student at a nearby college, recently secured a full-time accounting job at the restaurant. He felt fortunate to have a good job that accommodated his class schedule because the local economy was very bad. After a few weeks on the job, O’Shannon realized that his boss, the owner of the business, was paying the kitchen workers in cash and was not withholding federal and state income taxes or social security and Medicare taxes. O’Shannon understands that federal and state laws require these taxes to be withheld and paid to the appropriate agency in a timely manner. He also realizes that if he raises this issue, he could lose his job. What alternatives are available to O’Shannon? What action would you take if you were in his position? Why did you make this choice?

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Financial Accounting

ISBN: 9780547070025

9th Edition

Authors: Jr. Belverd E. Needles, Marian Powers

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