Question

Intertech corporation recorded pretax restructuring charges of $1033.5 million in 2017. The charges consisted of asset write-downs of $681 million, costs associated with exit or disposal activities of $99 million, and employee severance costs of $253.5 million. The company paid $108 million cash to settle these restructuring charges during the year (2017). At year end, the restructuring accrual associated with these charges was:Select one:A. $1,033.5 millionB. $ 326.0 millionC. $ 253.5 millionD. $ 244.5 millionE. There is not enough information to determine the amount.

Answer 1

Answer:

D) $244.5 million

Explanation:

To calculate the amount of money associated at the end of the year with this restructuring charges we can add the following costs:

= employee severance costs + costs associated with exit activities - cash paid during 2017

= $252.5 million + $99 million - $108 million = $244.5 million