In 20Xl, city employees earned $3.6 million in vacation pay that they did not use during the
Question:
In 20Xl, city employees earned $3.6 million in vacation pay that they did not use during the year. The city estimates that of this amount $2.8 million will be paid in 20X2 (out of amounts budgeted for that year), $0.6 million will be paid in subsequent years, and the balance of $0.2 million will not have to be paid. The amount that the city should add to a fund-statement liability account as of year-end 20Xl is
a. $0
b. $2.8 million
c. $3.4 million
d. $3.6 million
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Government And Not For Profit Accounting Concepts And Practices
ISBN: 9781119803898
9th Edition
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese
Question Posted: