Darwin Ltd has five employees. According to their particular employment award, longservice 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.

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.

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 of Employees	Current Salary	Years of service	Years until LSL vests	Bond rate (%)	Probability (%) that LSL will vest
Black	40 000	2	10	8.0	15
White	40 000	4	8	7.0	20
Brown	50 000	6	6	6.5	50
Green	60 000	8	4	6.0	70
Purple	70 000	10	2	5.8	90

Required

(a) Calculate Darwin Ltd.s current obligation for long-service leave. 05 (b) If the opening provision for long-service leave is $12 500, provide the journal entry to

record Darwin Ltd.s long-service leave expense.