Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows: Hourly Vacation Days Earned Vacation Days Used Year Wages by Each Employee by Each Employee 2020 $12.90 10 2021 13.50 10 2022 14.25 10 10 Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned. What is the amount of vacation pay expense that should be reported on Silver's income statement for 2020? O $36,120 O $0 O $37,800 O $34,440
Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows: Hourly Vacation Days Earned Vacation Days Used Year Wages by Each Employee by Each Employee 2020 $12.90 10 2021 13.50 10 2022 14.25 10 10 Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned. What is the amount of vacation pay expense that should be reported on Silver's income statement for 2020? O $36,120 O $0 O $37,800 O $34,440
Chapter3: Social Security Taxes
Section: Chapter Questions
Problem 13PA
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Transcribed Image Text:Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting
its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information
relative to these employees is as follows:
Hourly Vacation Days Earned Vacation Days Used
Year Wages
by Each Employee
by Each Employee
2020 $12.90
10
2021
13.50
10
8
2022
14.25
10
10
Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the
vacation pay is earned.
What is the amount of vacation pay expense that should be reported on Silver's income statement for 2020?
O $36,120
O $0
O $37,800
O $34,440
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