A company gives each of its 90 employees (assume they were all employed continuously through 2022 and 2023) 12 days of vacation a year if they are employed at the end of the year. The vacation accumulates and may be taken starting January 1 of the next year. The employees work 8 hours per day. In 2022, they made $17.50 per hour and in 2023 they made $20 per hour. During 2023, they took an average of 9 days of vacation each. The company's policy is to record the liability existing at the end of each year at the wage rate for that year. Under U.S. GAAP, what amount of vacation liability would be reflected on the 2022 and 2023 balance sheets, respectively? OA. $172,800; $194,400 OB. $172,800; $43,200 OC. $151,200, $43,200 OD. $151,200, $210,600

A company gives each of its 90 employees (assume they were all employed continuously through 2022 and 2023) 12 days of vacation a year if they are employed at the end of the year. The vacation accumulates and may be taken starting January 1 of the next year. The employees work 8 hours per day. In 2022, they made $17.50 per hour and in 2023 they made $20 per hour. During 2023, they took an average of 9 days of vacation each. The company's policy is to record the liability existing at the end of each year at the wage rate for that year. Under U.S. GAAP, what amount of vacation liability would be reflected on the 2022 and 2023 balance sheets, respectively? OA. $172,800; $194,400 OB. $172,800; $43,200 OC. $151,200, $43,200 OD. $151,200, $210,600

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6MC

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