RECOMMENDED!!BUSI 2002-Silver Ltd. has 35 employees who work 8-hour
Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 20×7, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 20×7 may be taken starting on January 1, 20×8. Information relative to these employees is as follows: Hourly Vacation Days Earned Vacation Days UsedYear Wages by Each Employee by Each Employee20x7 $12.6 10 020×8 13.4 10 620×9 14.3 10 10Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned.What is the amount of vacation pay expense that should be reported on Silver’s income statement for 20×7?
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