Question: Duri ng 2 0 2 0 , the first year of operations, Silver, Inc., pays salaries of $ 1 7 5 , 0 0 0

Duri ng 2020, 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 2021. What is the amount of the deduction for salary expense?
Group of answer choices
If Silver uses the cash method, $175,000 in 2020 and $0 in 2021.
If Silver uses the cash method, $0 in 2020 and $195,000 in 2021.
If Silver uses the accrual method, $175,000 in 2020 and $20,000 in 2021.
If Silver uses the accrual method, $195,000 in 2020 and $0 in 2021.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

During 2020, 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...

Q:

During 2017 , 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...

Q:

Show how you got answer During 2012, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end of employees have earned salaries of $20,000, which are not paid by Silver until...

Q:

Melba incurred the following expenses for her dependent daughter during the current year: How much may Melba deduct in computing her itemized deductions? A) $0 B) $8,800 C) $11,700 D) $18,100 E) None...

Q:

During 2018, 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...

Q:

During 2 0 2 3 , the first year of operations, Silver, Inc., pays salaries of $ 1 7 5 , 0 0 0 . At the end of the year, employees have earned salaries of $ 2 0 , 0 0 0 , which are not paid by Silver...

Q:

During 2019, 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 January 15th,...

Q:

Question Content Area During 2 0 2 0 , the first year of operations, Silver, Inc., pays salaries of $ 1 7 5 , 0 0 0 . At the end of the year, employees have earned salaries of $ 2 0 , 0 0 0 , which...

Q:

During 2 0 2 3 , the first year of operations, Silver, Inc., pays salaries of $ 1 7 5 , 0 0 0 . At the end of the year, employees have earned salaries of $ 2 0 , 0 0 0 , which are not paid by Silver...

Q:

During 2 0 2 3 , the first year of operations, Silver, Inc., pays salaries of $ 1 7 5 , 0 0 0 . At the end of the year, employees have earned salaries of $ 2 0 , 0 0 0 , which are not paid by Silver...

Q:

3) The governing equation in a plate is given by 2 + 4- ? The plate is subjected to the following boundary conditions: Insulation on x = 1; 0

Q:

What are some methods for straightening or flattening rod or sheet?

Q:

A hardware store gains subscribers to its email list by asking customers to sign up at in - store checkout, attending local events, and having a sign - up form on its website. The most active...

Q:

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....