On January 1, 2021, Grover Corporation agreed to grant all its employees two weeks paid vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2021, Grover's employees each earned an average of $600 per week. A total of 1,200 vacation weeks were earned in 2021, with 500 vacation weeks earned in 2021 but not taken during 2021. In its December 31, 2021, balance sheet, what amount of liability for compensated absences is Grover required to report? $420,000 $0. $720,000 $300,000