13 - 24 Test Bank for Intermediate Accounting, Thirteenth Edition 110. What is the amount of expense relative to compensated absences that should be reported on Vargas"s income statement for 2009? A. $0. B. $68,880. C. $75,600. D. $72,240. What is the amount of the accrued liability for compensated absences that should be reported at December 31, 2011? A. $94,920. B. $90,720. C. $79,800. D. $95,760. 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