Ndidi pays its employees on the last day of each month. The payroll information listed below is for January 2021, the first month of Ndidi's fiscal year.

Salaries	$102,000
Federal income taxes to be withheld	33,000
Federal unemployment tax rate (FUTA)	0.80%
State unemployment tax rate	5.40%
Social security tax rate	6.20%
Medicare tax rate	1.45%

The journal entry on January 31, 2021 to record monthly payroll taxes will:

Multiple Choice

a)Reduce equity by $61,197

b) Not affect total assets

c) Increase equity by $14,127

d) Increase liabilities by $7,803