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Question - M Corp. has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days. At December 31, 2018, M's unadjusted balance of liability for compensated absences was $31,200. M estimated that there were 200 total vacation days available at December 31, 2018. M's employees earn an average of $156 per day. In its December 31, 2018, balance sheet, what amount of liability for compensated absences is M required to report?
a. $31,200.
b. $0.
c. $468,000.
d. $234,000.
Currently the sales clerks receive a salary of $17,000 per month in Store Q. A proposal has been made to change from a fixed salary to a sales commission of 5%. Assume that this proposal is adopted, and that as a result sales in Store Q increase by $..
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