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Surf and Turf is a large restaurant in the suburbs of Chicago. Ronald Swift, an accounting student at a nearby college, recently secured a full-time accounting job there. He felt fortunate to have a good job that accommodated his class schedule. After a few weeks on the job, Swift realized that his boss, the owner of the business, was paying the kitchen workers in cash and not withholding federal and state income taxes or social security and Medicare taxes. Swift knows 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 Swift? What action would you take if you were in his position? Why did you make this choice?
Financial Statement Analysis and Preparation
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