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Under state law, Boca Co. may reimburse the state directly for actual unemployment claims or it may pay 3% of eligible gross wages. Boca believes that actual unemployment claims will be 2% of eligible gross wages, and has chosen to reimburse the state. Eligible gross wages are defined as the first
$15,000 of gross wages paid to each employee. Boca had four employees, each of whom earned $20,000 during the year. What amount should Boca report as accrued liability for unemployment claims in its year-end balance sheet?
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