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State Community College, a Public College, Grants Faculty Members a One-Year

question 25

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State Community College, a public college, grants faculty members a one-year sabbatical leave after each seven years of service.There are no requirements for research, study, or service during the compensated sabbatical leave.A particular faculty member earns $40,000 per year.Assuming that the college maintains its books and records in a manner that facilitates the preparation of government-wide financial statements and assuming that any appropriate accruals have been made, what is the appropriate entry to record the employee's salary paid while on sabbatical?

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Relative Price

The price of a good or service in comparison to the price of other goods and services, reflecting its opportunity cost.

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