Employee benefit plan for compensated absences

Reference no: EM131812822

North Corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days. Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days; however, no payment is given for sick days not taken. At December 31, 2016, North's unadjusted balance of liability for compensated absences was $21,000. North estimated that there were 150 vacation days and 75 sick days available at December 31, 2016. North's employees earn an average of $100 per day. In its December 31, 2016, balance sheet, what amount of liability for compensated absences is North required to report?

$21,000
$36,000
$22,500
$15,000

Reference no: EM131812822

Questions Cloud

Operating activities using the indirect method : Using the following information, determine the amount of cash flows from operating activities using the indirect method:

Determine the value of the inventory at the lower of cost : Question - Lower-of-Cost-or-Market Inventory. Determine the value of the inventory at the lower of cost or market

Investments are classified as available for sale : Investments are classified as available for sale. The investments at cost and fair value on December 31, 2016, are as follows:

Find probability that it lands heads up at most five times : A coin is bent so that the probability that it lands heads up is 2/3. The coin is tossed ten times.

Employee benefit plan for compensated absences : North Corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days.

Explain the areas to be explored including deployment : Explain the areas to be explored including deployment and performance issue of an application, configuration issues, network growth, centralized management etc.

Compute what is the total amount of medical expenses : What is the total amount of medical expenses (before application of the adjusted gross income limitation)

Find the probability of rolling doubles all three times : In a certain board game a player's turn begins with three rolls of a pair of dice. If the player rolls doubles all three times there is a penalty.

Operating activities using the indirect method : Using the following information, determine the amount of cash flows from operating activities using the indirect method:

User Account

All Pages