Summarize How the Following Information About Crank Corp $\$ 845,000$

question 28

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:

Employee Behaviour

The actions and conduct of individuals in the workplace, influenced by various factors like organizational culture, policies, and leadership.

Not Knowing

The state of lacking knowledge or information about a particular subject, issue, or situation.

Terminated Employees

Individuals whose employment has been ended by their employer due to various reasons, such as redundancy or performance issues.

Continuation of Benefits

A policy or practice ensuring employees continue to receive certain benefits, such as health insurance, even after employment termination or during a leave of absence.