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Question - Vaughn provides its employees 3 weeks of paid vacation per year. As of December 31, 55 employees have earned 3 weeks of vacation time to be taken the following year. The average weekly salary for these employees is $780. The compensated absences were properly accrued at Dec. 31. If the 55 employees each take 2 weeks of vacation in the following year, when they are being compensated at an average weekly salary of $820, what additional compensation expense will need to be recorded when the employees took the vacation time?
a. $0
b. $4,400
c. $120,000
d. $90,200
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