Pandora Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees services already rendered. The obligation relates to rights that vest, and payment of the compensation is probable. The amounts of Pandora's obligations as of December 31 are reasonably estimated as follows: Vacation pay

......................................... $110,000 Sick pay ............................................. 80,000 In its December 31 balance sheet, what amount should Pandora report as its liability for compensated absences?
a. $190,000
b. $110,000
c. $80,000
d. $0


A

Business

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