The following information pertains to Rik Co.'s two employees:

Name Weekly Salary No. of Weeks worked in 20x6 Vacation rights vest or accumulated

Ryan 800 52 YES

Todd 600 52 NO

Neither Ryan nor Toddntook the usual two-week vacation in 20x6. In Rik's December 31, 20x6, financial statements, what amount of vacation expense and liability should be reported? show the solution and explain.