Company began operations on Jan. 2, 2020. It employs 15 people who work 8-hour days. Each employee earns 10 paid vacation days annually. Vacation days may be taken after Jan. 10 of the year following the year in which they are earned. The average hourly wage rate was $24 in 2020 and $25.50 in 2021. The average vacation days used by each employee in 2021 was 9. The company accrues the cost of compensated absences at rates of pay in effect when earned.

1) Compute the amounts of liability balance for end of year 2021.