Hebrides Corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days. Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days; however, no payment is given for sick days not taken. Hebrides allows the use of sick days without objective evidence of sickness. At December 31, year 8, Hebrides's unadjusted balance of liability for compensated absences was $10,000. Hebrides estimated that there were 250 vacation days and 100 sick days available at December 31, year 8. Hebrides's employees earn an average of $100 per day but will receive raises such that the average daily pay in year 9 will be $110. In its December 31, year 8, balance sheet, what amount of liability for compensated absences is Hebrides required to report?

$38,500

Explanation:

Since Hebrides' employees can actually take sick days as semi vacation days since the company doesn't require actual evidence of sickness, the remaining 100 sick days must be treated as vacation days. That would increase the total number of vacation days accrued to 250 + 100 = 350.

to calculate the total liability amount that should be reported, we must multiply the total number of vacation days x pay per day = 350 days x $110 per day (new wage) = $38,500

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.