On January 1, Year 1, Baker Co. decided to grant its employee's 10 vacation days and five sick days each year. Neither vacation days nor sick days vest. Sick days may not be carried over to the next year. Each employee took an average of three sick days in Year 1. During Year 1, each of Baker's six employees earned $100 per day and earned 10 vacation days. Any earned but unused vacation days may be carried over to the following year. These vacation days were taken during Year 2. What amount should Baker accrue as compensated absence liability as of December 31, Year 1? O $0 $6,000