LOB D grants all employees vacation based on their years of service.
Unpaid vacation time can be accumulated and carried forward to succeeding years and will be paid at
the salaries in effect when vacations are taken.
Facts:
Liability for accumulated vacation as of 1/1/2016					$25M
Vacation taken during 2016 which was earned in prior years					$14M
Vacation earned for work performed during 2016					$18M
1. Show increases and decreases to the Vacation Liability account using the T-account below.
2. Calculate the balance in the Vacation Liability account as of 12/31/2016.
3. What is the vacation expense in 2016?
	Vacation Liability
			Balance 1/1/2016
			Balance 12/31/2016