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ABC Company determined that it has an obligation relating to employees' rights to re salaries for future absences, arising from services already rendered. This obligation is vesting rights, and payment for future absences is probable. At year-end, the obligati reasonably estimated as follows: Vacation Pay: 1,100,000 Sick Pay: 900,000 How much should be reported as liability for compensated absences? * O O Zero O P 900,000 O P 1,100,000 OP 2,000,000

ABC Company determined that it has an obligation relating to employees' rights to re salaries for future absences, arising from services already rendered. This obligation is vesting rights, and payment for future absences is probable. At year-end, the obligati reasonably estimated as follows: Vacation Pay: 1,100,000 Sick Pay: 900,000 How much should be reported as liability for compensated absences? * O O Zero O P 900,000 O P 1,100,000 OP 2,000,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Company determined that it has an obligation relating to employees' rights to receive salaries for future absences, arising from services already rendered. This obligation is related to vesting rights, and payment for future absences is probable. At year-end, the obligations are reasonably estimated as follows: Vacation Pay: 1,100,000 Sick Pay: 900,000 How much should be reported as liability for compensated absences? * O O Zero O P 900,000 O P 1,100,000 OP 2,000,000
Transcribed Image Text:ABC Company determined that it has an obligation relating to employees' rights to receive salaries for future absences, arising from services already rendered. This obligation is related to vesting rights, and payment for future absences is probable. At year-end, the obligations are reasonably estimated as follows: Vacation Pay: 1,100,000 Sick Pay: 900,000 How much should be reported as liability for compensated absences? * O O Zero O P 900,000 O P 1,100,000 OP 2,000,000
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