Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed
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 2019. What is the amount of the deduction for salary expense? a. If Silver uses the cash method, $0 in 2018 and $195,000 in 2019. Ob. If Silver uses the cash method, $175,000 in 2018 and $0 in 2019. c. If Silver uses the accrual method, $195,000 in 2018 and $0 in 2019. d. If Silver uses the accrual method, $175,000 in 2018 and $20,000 in 2019. e. None of these choices are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Salvation Audit

Authors: Colin Grant

74th Edition

094086634X, 978-0940866348

More Books

Students also viewed these Accounting questions

Question

Develop successful mentoring programs. page 400

Answered: 1 week ago