Cohen Co. pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Cohen accrues salaries expense only at its December 31 year-end. Data relating to salaries earned in December 2025 are as follows:

The last payroll was paid on 12/26/26, for the 2-weeks ended 12/26/26.

Overtime pay earned in the 2-weeks ended 12/26/26 was $25,000.

The remaining workdays in 2026 were December 29, 30, 31, on which days there was no overtime.

The recurring biweekly salaries total $450,000.

Assuming a five-day workweek, Cohen should record a liability at December 31, 2026 for accrued salaries of

$160,000.

$295,000.

$135,000.