Vanco Company has 70 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days of paid vacation each year. Vacation days earned in 2020 may first be taken on January 1, 2021. What is the amount of expense relative to compensated absences that should be reported on Vanco’s income statement for 2020? Information relative to these employees is as follows: Hourly Vacation Days Earned Vacation Days Used Year Wages by Each Employee by Each Employee 2020 $20.50 10 0 2021 22.50 10 8