Summarize How the Following Information About Crank Corp

question 51

Essay

Summarize how the following information about Crank Corp.'s restructuring would affect the balance sheet and income statement summary chart below.Crank Corp.'s restructuring will take approximately 18 months and was announced on March 15,2010:
(1)On March 15,2010 Crank Corp.announced its restructuring and recognized a restructuring charge of $845,000.
(2)The tax effect of the restructuring charge was estimated to be $230,000.
(3)Crank determined that the cost of disposing and removing facilities and equipment during 2010 $312,000.
(4)The tax effect associated with the disposal and removal of facilities and equipment are $95,000.
(5)Crank Corp.made cash payments to severed employees and lessors for lease terminations in 2010 equal to $78,000.
(6)The tax effect of the severance payments and lease cancellations was $19,000.

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Definitions:

Sample Mean

The average value calculated from a subset of a population.

Alternative Hypothesis

The hypothesis that proposes there is a statistically significant difference between two variables, contrasted with the null hypothesis.

Population Mean

The average of all the values in a population, serving as a measure of central tendency for the entire population.

Sample Mean

The mean value derived from all the data points in a given sample.