On January 1, year 1, Aph Co. signed an annual maintenance agreement with a software provider for $21,000 and the maintenance period begins on June 1, year 1. Aph also incurred $8,700 of costs on January 1, year 1, related to software modification requests that will increase the functionality of the software. Aph depreciates and amortizes its computer and software assets over zix years using the straight-line method. What amount is the total expense that Aph should recognize related to the maintenance agreement and the software modifications for the year ended December 31, year 1?

Under state law, Ace may pay 4% of eligible gross wages or it may reimburse the state directly for actual unemployment claims.

Ace believes that actual unemployment claims will be 3% of eligible gross wages and has chosen to reimburse the state. Eligible gross wages are defined as the first $10,000 of gross wages paid to each employee. Ace had five employees, 4 of whom earned $20,000 and one earned 9,000 during 20X4.

In its December 31, 20X4 balance sheet, what amount should Ace report as accrued liability for unemployment claims?