Use the following information for questions 34-35.
Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows: Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned.
-What is the amount of vacation pay expense that should be reported on Silver's income statement for 2020?
A) $ 37,800
B) $ 36,120
C) $ 34,440
D) $ 0

Question

Use the following information for questions 34-35.
Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows:  Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned.
-What is the amount of vacation pay expense that should be reported on Silver's income statement for 2020?
A) $ 37,800 
B) $ 36,120 
C) $ 34,440 
D) $ 0

Quizplus · Accepted Answer

The Answer of Use the following information for questions 34-35.
Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows:  Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned.
-What is the amount of vacation pay expense that should be reported on Silver's income statement for 2020?
A) $ 37,800 
B) $ 36,120 
C) $ 34,440 
D) $ 0

Use the Following Information for Questions 34-35