A company gives each of its 100 employees (assume they were all employed continuously through 2016 and 2017) 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 2016, they made $17.50 per hour and in 2017 they made $20 per hour. During 2017, 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. What amount of vacation liability would be reflected on the 2016 and 2017 balance sheets, respectively?

The answer is $168,000; $240,000. I want to know how to calculate.