Vanessa Company has 35 employees who work 8 hours a day and are paid hourly. On January 1, 2018, the entity began a program of granting the employees 10 days of paid vacation each year. Vacation days earned in 2018 may first be taken on January 1, 2019. Hourly Year wage Vacation days earned by each employee Vacation days used by each employee 2018 129.00 10 0 2019 135.00 10 8 2020 142.50 10 10 The entity has chosen to accrue the liability for compensated absences at the current rate of pay in effect when the compensated time is earned. 1. What is the vacation pay expense for 2018? a. 361,200 b. 378,000 c. 344,400 d. 0 2. What is the accrued liability on December 31, 2020? a. 474,600 b. 453,600 c. 399,000 d. 498.800 3. What is the accrued liability on December 31, 2020 assuming the 'policy is to accrue liability at the end of each year at the wage rate for that year? a. 453,600 b. 478,800 c. 474,600 d. 399,000