Encore Company self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $2,000,000 per year. The company estimates that on average it will incur losses of $1,600,000 per year. During 2020, $800,000 worth of losses were sustained. How much total expense and/or loss should be recognized by Encore Company for 2020?

	A.	$800,000 in losses and no insurance expense
	B.	$800,000 in losses and $1,200,000 in insurance expense
	C.	$0 in losses and $1,200,000 in insurance expense
	D.	$0 in losses and $2,000,000 in insurance expense

MSM provides its employees two weeks of paid vacation per year. As of December 31, 65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $960, what is the required journal entry?

	A.	Debit Salaries and Wages Expense for $124,800 and credit Salaries and Wages Payable for $124,800.
	B.	No journal entry required.
	C.	Debit Salaries and Wages Payable for $124,295 and credit Salaries and Wages Expense for $124,295.
	D.	Debit Salaries and Wages Expense for $62,400 and credit Salaries and Wages Payable for $62,400.