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Question - Sala joined the company 7 years ago.
She is entitled to 13 weeks of long service leave after completing 10 years of service with the company.
Her current salary is $50,000. Salaries are expected to grow by 2% for the next 5 years.
Sala is 80% certain that she will not leave the company in the next 5 years.
High quality bonds with a 5 year term have an interest rate of 6% and high quality bonds with a 3 year term have an interest rate of 4%
The beginning balance for the long service leave account already has a balance of $4,000.
What will be the adjusting journal entry amount in relation to this long service leave above?
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