During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $223,182.00 instead of the correct amount of $171,088.00. The effect on the balance sheet and income statement would be a. assets overstated by $52,094.00; retained earnings understated by $52,094.00; and net income statement understated by $52,094.00 b. assets overstated by $223,182.00; retained earnings understated by $171,088.00; and no effect on the income statement c. assets, retained earnings, and net income all overstated by $52,094.00 d. assets and retained earnings overstated by $171,088.00; and net income understated by $223,182.00

On january 8, the end of the first weekly pay period of the year, regis company's payroll register showed that its employees earned $22,760 of office salaries and $70,840 of sales salaries. withholdings from the employees' salaries include fica social security taxes at the rate of 6.20%, fica medicare taxes at the rate of 1.45%, $13,260 of federal income taxes, $1,450 of medical insurance deductions, and $860 of union dues. no employee earned more than $7,000 in this first pay period. required: 1.1 calculate below the amounts for each of these four taxes of regis company. regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid to each employee. the federal unemployment tax rate is 0.60