At December 31, 2006, Taos Co. estimates that its employees have earned vacation pay of $100,000. Employees will receive their vacation pay in 2007. Should Taos accrue a liability at December 31, 2006, if the rights to this compensation accumulated over time or if the rights are vested?
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Accumulated |
Vested |
|
a. |
Yes |
No |
b. |
No |
No |
c. |
Yes |
Yes |
d. |
No |
Yes |