During 2014,the First Year of Operations,Silver,Inc

Multiple Choice

During 2014,the first year of operations,Silver,Inc. ,pays salaries of $175,000.At the end of the year,employees have earned salaries of $20,000,which are not paid by Silver until early in 2015.What is the amount of the deduction for salary expense?

A) If Silver uses the cash method,$175,000 in 2014 and $0 in 2015.
B) If Silver uses the cash method,$0 in 2014 and $195,000 in 2015.
C) If Silver uses the accrual method,$175,000 in 2014 and $20,000 in 2015.
D) If Silver uses the accrual method,$195,000 in 2014 and $0 in 2015.
E) None of the above is correct.