Question: PLEASE HELP ME TO DO THIS PROBLEM. THANK YOU Compensated Absences Morgan Company determined that (1) it has a material obligation relating to employees' rights

PLEASE HELP ME TO DO THIS PROBLEM. THANK YOU

Compensated Absences

Morgan Company determined that (1) it has a material obligation relating to employees' rights to receive compensation for future absences attributable to employees' services already rendered, (2) the obligation relates to rights that vest, and (3) payment of the compensation is probable. The amount of Morgan's obligation as of December 31, 2016, is reasonably estimated for the following employee benefits:

Vacation pay	$100,000
Holiday pay	$25,000

What total amount should Morgan report as its liability for compensated absences on its December 31, 2016, balance sheet?

a.$100,000

b.$125,000

c.$0

d.$25,000

When I answer $100,000, they told me IT IS NOT CORRECT, so please help me which number is CORRECT.

Thank you!

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