Ross Co. pays all salaried employees on a Monday for the five-day workweek ended the previous Friday. The last payroll recorded for the year ended December 31, year 2, was for the week ended December 25, year 2. The payroll for the week ended January 1, year 3, included regular weekly salaries of $80,000 and vacation pay of $25,000 for vacation time earned in year 2 not taken by December 31, year 2. Ross had accrued a liability of $20,000 for vacation pay at December 31, year 1. In its December 31, year 2 balance sheet, what amount should Ross report as accrued salary and vacation pay?