Question

Mark Brandt, an employee of Mueller Corp., earned 3 weeks of compensated vacation time during the current year, but only took 2 weeks of vacation. His employer permits that 1 week of vacation can be carried forward to the following year. Mark fully intends to remain at his current employer and plans to take his vacation during the following year. His current weekly salary is $2,000. Mueller Corp. expects to grant a general salary increase of 5% effective at the beginning of the next year. What amount should Mueller accrue during the current year relating to Mark Brandt's carried-forward vacation

Answer 1

Mark Brandt of Mueller Corporation

The amount that Mueller should accrue during the current year relating to Mark Brandt's carried-forward vacation is:

= $2,100

Step-by-step explanation:

a) Data and Calculations:

Current weekly salary = $2,000

Expected general salary increase = 5%

The amount that Mueller should accrue during the current year relating to Mark Brandt's carried-forward vacation is:

= $2,000 * 1.05

= $2,100

b) $2,100 is the amount that will be paid in cash for cash settlement of Mark Brandt's carried-forward vacation, assuming he does not take it the following year.