Beech Refuses to State Her Marital Status on Form W-4

question 17

Multiple Choice

Beech refuses to state her marital status on Form W-4 which she gave to you, the payroll manager, when she was hired. You should:

• A) tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it.
• B) inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status.
• C) tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance.
• D) tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances.
• E) advise Beech to write "It is no business of yours." in the margin of her Form W-4.

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Definitions:

Wholly Owned Subsidiary

A firm entirely possessed by another corporation, known as the parent company, holding all of its share capital.

Non-Controlling Interest

A ownership stake in a corporation where the holding gives the investor less than 50% voting power.

Intercompany Profits

Profits derived from transactions between companies within the same group, which may need to be eliminated in consolidated financial statements.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets; reflects the value of the brand, customer relationships, and reputation.