Question

During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $23,125 and $15,073, respectively. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year

Answer 1

Answer:

$38,198

Explanation:

Recognization principle state that the total amount paid in the first year will be the sum of the amounts given as a whole which will inturn be considered as paid for the employees.

Therefore for the first year, the vacation pay and the pension right will be :

$23,125 +$15,073

=$38,198

Therefore the total cost of vacation pay and pension rights to be recognized in the first year will be $38,198