Waterway Industries has 65 employees who works-hour days and are paid hourly. On January 1, 2017, the company began a program of granting its employees 10 days of paid vacation each year, Vacation days earned in 2017 may first be taken on January 1, 2018. Information relative to these employees is as follows: Vacation Days Earned by Each Employee Vacation Days Used by Each Employee Year 2017 2018 2019 Hourly Wages $24.50 26.50 29.50 10 Waterway has chosen to accrue the ability for compensated absences at the current rates of pay in effect when the compensated time is earned What is the amount of expense relative to compensated absences that should be reported on Waterway's income statement for 2017 $137800 5127400 $153400