Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ivanhoe company has 60 employees who work 8-hour d

Ivanhoe Company has 60 employees who work 8-hour days and are paid hourly....

90.2K

Verified Solution

Question

Accounting

Ivanhoe Company has 60 employees who work 8-hour days and are paid hourly. On January 1,2025, the company began a program of granting its employees 10 days of paid vacation each year. Vacation days earned in 2025 may first be taken on January 1,2026. Information relative to these employees is as follows:
\table[[Year,\table[[Hourly],[Wages]],\table[[Vacation Days Earned],[by Each Employee]],\table[[Vacation Days Used],[by Each Employee]]],[2025,$27.50,10,0],[2026,29.50,10,8],[2027,32.50,10,10]]
Ivanhoe has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned.
What is the amount of the accrued liability for compensated absences that should be reported at December 31,2027?
$212640.
$156000.
$184320.
$425280.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students