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I don't know how to get the 2021 liability for requirement 1. this is the answer below I dont get why the unused leave is
I don't know how to get the 2021 liability for requirement 1. this is the answer below
I dont get why the unused leave is 2, 5, and 4.
And also when I take 740 divided by salary per day, I get 3, 5, and 4 instead. (740/(90000/365))
E 13-32 Short-term employee expense OLO13-12 The following employees have leave plans with their employer AYE Company. The salaries and leave details for the current year ended December 31, 2020, and the unused leave at the end of the year ended December 31, 2021, are shown below. Employee First employed.............. Ms. Shin June 3, 2009 Mc Black January 2, 2008 Ms. Hiroko September 15, 2010 21 21 Annual leave entitlement Annual salary. 21 $90,000 $85.000 $92,000 9 10 95% 100% 90% Unused leave, December 31, 2020... Expected utilization rate Unused leave from 2020, December 31, 2021 Required: Assuming that the leave plan is accumulating and vesting: 1. Calculate the liability for paid leave at the end of 2020 and 2021. 2. Determine the short-term employee expense for the year ended December 31, 2020. Exercise 13-32 Requirement 1 Ms Hiroko $2,521 Ms Shin Mr Black Liability for 2020 unused leave, Dec 31, 2020 (Unused leave x Salary per day) $2,219 $1,863 Unused leave from 2020, Dec 31, 2021 2 5 Liability for 2020 unused leave, Dec 31 2021 (Unused leave x Salary per day) $740 $1,164 $1,008Step by Step Solution
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