What is the effect of assets and liabilities


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.

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Accounting Basics: What is the effect of assets and liabilities
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