Alexandra Bay Ltd has five employees. According to their particular employment award, long-service leave can be taken after 12 years, at which time the employee is entitled to 10 weeks leave. If an employee were to leave before the completion of 12 years service, no entitlement would be paid.

Name of employee	Current salary ($)	Years of service	Years until LSL vests
Mike Black	40 000	2	10
Jan White	40 000	4	8
Noel Brown	50 000	6	6
Peter Green	60 000	8	4
Alvin Purple	70 000	10	2

High-quality corporate bond rates exist with periods to maturity that exactly match the various periods that must still be served by the employees before LSL entitlements vest with them.

Corporate bond period to maturity	Bond rate (%)
10	8.0
8	7.0
6	6.5
4	6.0
2	5.8

The projected inflation rate for the foreseeable future is 2 per cent. The projected probabilities that the employees will stay long enough for the LSL to vestthat is, for a total of 12 yearsare as follows:

Name	Probability (%) that LSL will vest
Mike Black	15
Jan White	20
Noel Brown	50
Peter Green	70
Alvin Purple	90

REQUIRED

(a)Calculate Alexandra Bays current obligation for long-service leave.

(b)If the opening provision for long-service leave is $12 500, provide the journal entry to record Alexandra Bays long-service leave expense