Elan Co. has two employees. Each employee receives two weeks of paid vacation each year. Vacation rights accumulate. One employee, whose weekly salary is $600, took a two-week vacation during the year, but the other employee, who earns $800 per week, took no vacation during the year. In its year-end financial statements, what amount should Elan report as vacation liability and expense? Liability Expense A. $1,600 $1,200 B. $1,600 $2,800 C. SO $1.200 D. SO $2,800