During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $21,500 and $15,000. the vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5–30 years. what is the total cost of vacation pay and pension rights to be recognized in the first year?

Costs of vacation privileges=$21,500 for the first year

Costs of pension rights=$600 for the first year

Explanation:

Company grants employees;

Vacation privileges=$21,500, take in a year

Pension rights=$15,000,taken in 5-30 years

Pension rights time frame=(30-5)=25 years

Costs of vacation privileges per year=Total cost/number of years

21,500/1=$21,500

Costs of pension rights per year=Total cost/number of years

15,000/25=$600

In the first year the costs for pension rights and vacation privileges are as follows;

Costs of vacation privileges=$21,500

Costs of pension rights=$600

answer; (covenant); good luck