ABC Co. has a gross payroll of $18,000. The FICA tax rate is 7.65% of the gross payroll, and the federal and state withholding are $1,600 and $963 respectively. On recording the payroll tax liability, net assets of the company:

a.decrease by $5,485.

b.increase by $21,940.

c.decrease by $14,060.

d.increase by $13,940.