These two events occurred in the same city toward the end of calendar year 2022: City employees earned $89,250 during the last week of December 2022, but were not paid until early January 2023. A city sanitation vehicle accidentally sideswiped a parked car in December 2022. The city acknowledges that it was at fault, and its attorneys believe it will need to pay $10,500 to settle the claim. However, the city is slow in settling claims, so it probably wont pay the claim until early 2024. Based on these two events, how much should the city report as expenditures in its financial statements for the year ended December 31, 2022?

Select one:

a. $89,250

b. $99,750

c. $10,500