Medical Services Inc. allows employees at the end of the year to carry forward up to 40 hours of paid time off at their current salary. James is a full time employee who has unused vacation time of 80 hours, and Marcia, also a full time employee, has unused vacation time of 48 hours. How much should Medical Services Inc. record as a liability for the unpaid vacation time at the end of the year?
Employee Hourly Rate
James $ 14.00
Marcia $ 16.00
a. $ 1,200
b. $ 1,328
c. $ 1,760
d. $ 1,888