Once you select Research and Exams you will be able to select $$Extra Credit Research Assignment$.$ You will have unlimited time to submit your response, but you will only have one attempt to submit your response. Your solution must be submitted by $12$pm$,$ Thursday, May $15,2025.$ Remember that the only sections that contain the answer are: $25$ Recognition $30$ Initial Measurement $35$ Subsequent Measurement $40$ Derecognition $45$ Other Presentation Matters $50$ Disclosure $1$ Research Case: You are the new staff accountant at Canfield Corporation. The company is privately held and is finalizing the financial statements for the fiscal year ending $4/30/25.$ Canfield Corporation permits all employees to earn vacation time during the year. Any unused vacation time that was earned in the current year may be carried over to the next fiscal year. Any vacation time earned in one year and carried over to the next fiscal year must be taken by the employee in the subsequent year or it will be forfeited by the employee. However, if an employee terminates their employment with the company $($either by the employee$$s choice or the company$$s choice to terminate$)$ any vacation time that was carried over from the prior year will be $$lost$.$ Based upon past experience the company expects that $25\%$ of all unused vacation time will be $$lost$$ due to employee termination and not using vacation time carried over into the next fiscal year The accounting records at Canfield indicate that the company did not include any recognition of the expense and related liability for earned but unused vacation time for employees. The dollar value of the unused vacation time as of April $30,2025$ is $ $200,000.$

Accounting Issue: What is the correct amount $($if any$)$ that Canfield Corporation should recognize for vacation that has been earned but not yet been taken by employees in their financial statements for the year ending April $30,2025?$

$1.$ Codification Reference:

Interpretation$/$Application of Guidance:

$2.$ What is the correct amount $($if any$)$ that should be recognized for the unused vacation time for the year ending $4/30/25($this will be a fill in the blank question$)$