1. During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $25,377 and $13,745. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year?

   a.$66,612

   b.$13,745

   c.$25,377

   d.$39,122