Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 71

The employees of the City of Jones earn vacation time that totals $1,000 per week during the year. Of this amount, $12,000 is actually taken in Year 1 and the remainder is taken in Year 2.
What liability should the city report on government-wide financial statements at the end of Year 1
a. It depends on whether the employees work at governmental activities or business-type activities.
b. $-0 -.
c. $40,000.
d. $52,000.