Rice Co. salaried employees are paid biweekly. Advances made to employees are paid back by payroll deductions. Information relating to salaries follows:

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12/31/05

12/31/06

Employee advances

$24,000

$ 36,000

Accrued salaries payable

40,000

?

Salaries expense during the year

420,000

Salaries paid during the year (gross)

390,000

In Rice’s December 31, 2006 balance sheet, accrued salaries payable was

  1. $94,000
  2. $82,000
  3. $70,000
  4. $30,000