Under state law, Acme may pay 3% of eligible gross wages or
it may reimburse the state directly for actual unemployment
claims. Acme 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 $10,000 of gross
wages paid to each employee. Acme had five employees, each of
whom earned $20,000 during year 2. In its December 31, year 2
balance sheet, what amount should Acme report as accrued liability
for unemployment claims?