Emily Corporation has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days. At December 31, 2021, Emily's unadjusted balance of liability for compensated absences was $33,000. Emily estimated that there were 200 total vacation days available at December 31, 2021. Emily's employees earn an average of $165 per day. In its December 31, 2021, balance sheet, what amount of liability for compensated absences is Emily required to report

$33,000

Explanation:

Calculation for what amount of liability for compensated absences is Emily required to report

Based on the information given we were told that at December 31, 2021, Emily's unadjusted balance of liability for compensated absences was the amount of $33,000 in which it was estimated that there were 200 total vacation days available while the employees earn an average of $165 per day which means that the amount of liability for compensated absences that Emily is required to report is $33,000 (200 total vacation days * Average amount earn by the employees of $165 per day)

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