Bruce Lee is the CEO of martial arts firm, Water Inc., who had a lucrative contract that paid him a regular salary of $$5$ million every year while he was employed with Water Inc. The board of directors of Water Inc. communicate clearly and formally to him that he will be laid off on December $31$st$,2023.$

Bruce$$s contract, however, stipulated that if he were laid off by Water Inc., he would be owed a regular annual salary for five more years after the termination date even though he would no longer be actively employed by Water Inc.

a$)$ Write any journal entries that Water Inc. must record on December $31$st$,2023,$ assuming that Water Inc. does not discount this liability. $(1$ point$)$

b$)$ Write any journal entries that Water Inc. must record on December $31$st$,2023,$ assuming that

Water Inc. does discount such transactions using a $7\%$ rate.