South Company has an employee benefit plan for compensated absences that gives employees 20 paid vacation days and 5 paid sick days each year. Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days, but not for sick days that are not used. At December 31, 2014, South's unadjusted balance of the liability for compensated absences was $22,000. South estimated that there were 200 vacation days and 110 sick days available to employees at December 31, 2014. South's employees earn an average of $125 per day. In its December 31, 2014, balance sheet, what amount of liability for compensated absences is South required to report?

	A.	$0
	B.	$22,000
	C.	$25,000
	D.	$38,750