CalCount pays a weekly payroll of $85,000 that includes federal taxes withheld of $12,700, FICA taxes withheld of $7,890, and 401(k) withholdings of $9,000. What is the effect of assets and liabilities from this transaction?
a) Assets decrease $85,000 and liabilities do not change.
b) Assets decrease $64,410 and liabilities increase $20,590.
c) Assets decrease $64,410 and liabilities decrease $20,590.
d) Assets decrease $55,410 and liabilities increase $29,590.