Under the assumption: Unused vacation leaves do not vest (accumulating and non-vesting). What is the balance of liability for compensated absences for the year ended December 31, 2019? * ABC Corp allows each employee to earn 15 days of paid vacation leave per year. Unused vacation leave can be carried up to two years from the year there were earned, thereafter it shall expire. The company has 50 employees (assumed have been employed throughout 2019 and 2020) with an average salary of P900 per day. Salary rates increased by 10% in 2020. According to past experience, 75% of allowed leaves to be carried-forward are ultimately exercised by the employees. Total leave vacation taken by employees during 2019 and 2020 were 400 days and 480 days, respectively.
Under the assumption: Unused vacation leaves do not vest (accumulating and non-vesting). What is the balance of liability for compensated absences for the year ended December 31, 2019? * ABC Corp allows each employee to earn 15 days of paid vacation leave per year. Unused vacation leave can be carried up to two years from the year there were earned, thereafter it shall expire. The company has 50 employees (assumed have been employed throughout 2019 and 2020) with an average salary of P900 per day. Salary rates increased by 10% in 2020. According to past experience, 75% of allowed leaves to be carried-forward are ultimately exercised by the employees. Total leave vacation taken by employees during 2019 and 2020 were 400 days and 480 days, respectively.
Chapter3: Social Security Taxes
Section: Chapter Questions
Problem 13PA
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Question
![Under the assumptlon: Unused vacation leaves do not vest (accumulating and
non-vesting), What is the balance of llablity for compensated absences for the
year ended December 31, 2019? *
ABC Corp allows each employee to earn 15 days of paid vacation leave per year.
Unused vacation leave can be carried up to two years from the year there were earned,
thereafter it shall expire. The company has 50 employees (assumed have been
employed throughout 2019 and 2020) with an average salary of P900 per day. Salary
rates increased by 10% in 2020.
According to past experience, 75% of allowed leaves to be carried-forward are
ultimately exercised by the employees. Total leave vacation taken by employees
during 2019 and 2020 were 400 days and 480 days, respectively.
Your answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06807cea-c90e-4d99-b132-e38c817b842d%2Febb0751f-f1df-4978-b839-19ec2eadbb9c%2Fmlkc4at_processed.png&w=3840&q=75)
Transcribed Image Text:Under the assumptlon: Unused vacation leaves do not vest (accumulating and
non-vesting), What is the balance of llablity for compensated absences for the
year ended December 31, 2019? *
ABC Corp allows each employee to earn 15 days of paid vacation leave per year.
Unused vacation leave can be carried up to two years from the year there were earned,
thereafter it shall expire. The company has 50 employees (assumed have been
employed throughout 2019 and 2020) with an average salary of P900 per day. Salary
rates increased by 10% in 2020.
According to past experience, 75% of allowed leaves to be carried-forward are
ultimately exercised by the employees. Total leave vacation taken by employees
during 2019 and 2020 were 400 days and 480 days, respectively.
Your answer
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