Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
Vargas Company has 35 employees who work 8-hour days and are paid hourly.On January 1, 2010, the company began a program of granting its employees 10 days of paid vacation each year.Vacation days earned in 2010 may first be taken on January 1, 2011.Information relative to these employees is as follows:
Vargas has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned.
-What is the amount of expense relative to compensated absences that should be reported on Vargas's income statement for 2010?

A) $0.
B) $68,880.
C) $75,600.
D) $72,240.