Question
The employees of Dirty Harry Co. are covered by an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation
The employees of Dirty Harry Co. are covered by an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days. At December 31, 2022, Dirty Harry estimated that there were 200 total vacation days available at December 31, 2022. Dirty Harry's employees earn an average of $126 per day. What is the amount of liability for compensated absences is Dirty Harry required to report in it's December 31, 2022 balance sheet?
$25,200.
$0.
$378,000.
$189,000.
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