Reducto Co

Multiple Choice

Reducto Co.pays a weekly payroll of $95,000 that includes federal taxes withheld of $12,700,FICA taxes withheld of $7,270,and retirement withholdings of $6,000.What is the effect of assets and liabilities from this transaction?

A) Assets decrease $85,000 and liabilities decrease $25,970.
B) Assets decrease $85,000 and liabilities increase $25,970.
C) Assets decrease $69,030 and liabilities decrease $25,970.
D) Assets decrease $69,030 and liabilities increase $25,970.