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