Pirate Ltd employs 5 staff. Each staff member is entitled to 20 days annual leave per annum. Leave loading of 17.5% is paid when the leave is taken. At 1 July 2015 the balance in the provision for annual leave account was €20 303. Details of each employees leave entitlement at 30 June 2016 are as follows:

\begin{array}{|l|l|l|l|}\hline \text { Employee } & \text { Salary } & \begin{array}{l}\text { Days owing @ } \\1 / 7 / 13\end{array} & \begin{array}{l}\text { Days taken } \\\text { during year }\end{array} \\\hline \text { Jo Bird } & € 65,000 & 17 & 22 \\\hline \text { Bill Brown } & € 70,000 & 5 & 12 \\\hline \text { Ben Fit } & € 85,000 & 24 & 18 \\\hline \text { Greg Horn } & € 62,500 & 3 & 15 \\\hline \text { Lou Hamilton } & € 90,000 & 9 & 26 \\\hline\end{array}

There are 260 work days in a year. On 1 July each year all employees receive a 5% wage rise. There are no other wage rises given during the year.
Annual leave payments made during the year were debited against the provision account. The total debit against the annual leave account during the year in relation to leave taken was:
A) €27 221
B) €28 654
C) €33 585
D) €33 668

An Entity Is Able to Record a Provision for Termination

Multiple Choice

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