Qualpoint Pays a Weekly Payroll of $170,000 That Includes Federal

Multiple Choice

Qualpoint pays a weekly payroll of $170,000 that includes federal taxes withheld of $25,400, FICA taxes withheld of $15,780, and 401(k) withholdings of $18,000. What is the effect of assets and liabilities from this transaction?

A) Assets decrease $170,000 and liabilities do not change.
B) Assets decrease $128,820 and liabilities increase $41,180.
C) Assets decrease $128,820 and liabilities decrease $41,180.
D) Assets decrease $110,820 and liabilities increase $59,180.