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Masters Ltd Has Three Employees Who Are Entitled to Long

Question 55

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Masters Ltd has three employees who are entitled to long service leave (LSL) . The LSL can be taken after 15 years of service, at which time the employee is entitled to 13 weeks' leave. After 10 years the employee is entitled to a pro rata cash payment on leaving the company. Information about the employees is set out below:
Masters Ltd has three employees who are entitled to long service leave (LSL) . The LSL can be taken after 15 years of service, at which time the employee is entitled to 13 weeks' leave. After 10 years the employee is entitled to a pro rata cash payment on leaving the company. Information about the employees is set out below: Other information collected. The inflation rate for the foreseeable future is 3.5 per cent. The future salaries of the employees are expected to keep pace with inflation but not increase as a result of promotion. If the opening balance of the LSL provision is $20,561, what is the LSL expense for the current period (round amounts to the nearest dollar) ? A) $1202 B) $948 C) $1064 D) $21 763 E) None of the given answers.
Other information collected.
Masters Ltd has three employees who are entitled to long service leave (LSL) . The LSL can be taken after 15 years of service, at which time the employee is entitled to 13 weeks' leave. After 10 years the employee is entitled to a pro rata cash payment on leaving the company. Information about the employees is set out below: Other information collected. The inflation rate for the foreseeable future is 3.5 per cent. The future salaries of the employees are expected to keep pace with inflation but not increase as a result of promotion. If the opening balance of the LSL provision is $20,561, what is the LSL expense for the current period (round amounts to the nearest dollar) ? A) $1202 B) $948 C) $1064 D) $21 763 E) None of the given answers.
The inflation rate for the foreseeable future is 3.5 per cent. The future salaries of the employees are expected to keep pace with inflation but not increase as a result of promotion. If the opening balance of the LSL provision is $20,561, what is the LSL expense for the current period (round amounts to the nearest dollar) ?


A) $1202
B) $948
C) $1064
D) $21 763
E) None of the given answers.

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