During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $

Question

2 years ago

11

During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $

45,000 and $36,000. The vacations are expected to be taken in the next year and the pension rights are expected to be paid over the next 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year?

Business

1 answer:

lorasvet [3.4K] · Answer 1 · 2022-06-11T19:57:45+03:00

Answer:

The total cost of vacation pay and pension rights to be recognized the first year is $0

Explanation:

The vacations are expected to be taken the following year for which the vacation pay would be made and the pension rights are expected to be paid over the next 5-30 years. So, no cost is recognized in the first year