Use the following information to answer Questions Sick leave vests at the completion of the fifth year of employment, and unused sick leave is paid in cash upon termination or retirement. During the fiscal year ended 6/30/18, city employees who are paid from the general fund earned $2.8 million of sick leave, of which $1.0 was taken. Of the balance, the city estimates that $0.2 million will be taken in the next 60 days, $0.6 million will be taken in the next five years, $0.4 million will vest, and $0.6 million will never be taken.
-The amount of sick leave expense that should appear on the government-wide financial statements for the fiscal year ended 6/30/18 is
A) $2.8 million.
B) $2.6 million.
C) $1.2 million.
D) $1.4 million.

Question

Quizplus · Accepted Answer

The amount of sick leave expense that should appear on the government-wide financial statements for the fiscal year ended 6/30/18 is $1.4 million. This is calculated as the total sick leave earned during the year ($2.8 million) minus the sick leave taken during the year ($1.0 million) minus the sick leave estimated to be taken in the next 60 days ($0.2 million) minus the sick leave estimated to be taken in the next five years ($0.6 million).

Use the Following Information to Answer Questions Sick Leave Vests