Blossom Company began operations on January $2,2025.$ It employs $11$ individuals who work $8-$hour days and are paid hourly. Each

employee earns $11$ paid vacation days and $6$ paid sick days annually. Vacation days may be taken after January $15$ of the year following

the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional

information is as follows.

Blossom Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and

to accrue sick pay when earned.

$($a$)$

Your answer is correct.$($b$)$

Your answer is incorrect.

Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December $31,$

$2025$ and $2026.$