Derik Inc., a calendar year, accrual basis corporation, accrued $278,000 payroll expense and a corresponding liability at the end of 2020. Derik paid $62,000 of the accrued liability between January 1 and March 15, 2021. The remainder was paid out by September 15, 2021. How much of the payroll expense is deductible in 2020?

Group of answer choices

$62,000.

$216,000.

None of the accrued expense is deductible in 2020.

$278,000