Under state law, Acme may pay 3% of eligible

Under state law, Acme may pay 3% of eligible
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 2011. In its December 31, 2011 balance sheet, what amount should Acme report as accrued liability for unemployment claims?