Rodrigo Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Rodrigo Company accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2017 are as follows:

Last payroll was paid on 12/26/17, for the 2-week period ended 12/26/17.

Overtime pay earned in the 2-week period ended 12/26/17 was $25,000

Remaining work days in 2017 were December 29, 30, 31, on which days there was no overtime.

The recurring biweekly salaries total $450,000

Assuming a five-day workweek, Rodrigo Company should record liability at December 31, 2017 for accrued salaries of:

(a) $270,000

(b) $135,000

(c) $160,000

(d) $295,000

*Please show your work and how you got your numbers. Thank you