Vanco Company has 70 employees who work 8-hour days and are paid hourly. On January 1, 2024, the company began a program of granting its employees 10 days of paid vacation each year. Vacation days earned in 2024 may be used immediately in 2024 and unused vacation days may be carried over to the following year. Information relative to these employees for 2024 is as follows:

Hourly Vacation Days Earned Vacation Days Used

Year Wages by Each Employee by Each Employee

2024 $20.50 10 6

Vanco has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned.

What should Vanco record as the vacation pay accrual (liability) at 12/31/24?

a.

$0

b.

$114,800

c.

$68,880

d.

$45,920