(Learning Objective 1: Reporting payroll expense and liabilities) Perform Talent Search has an annual payroll of $200,000. In addition, the company incurs a payroll tax expense of 8%. At December 31, Perform owes salaries of $8,100 and payroll tax of $800.

The company will pay these amounts early next year. Show what Perform will report for the foregoing on its income statement and year-end balance sheet.