1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pantera1 [17]
2 years ago
12

The board of directors of Chestnut Inc. approved a restructuring plan on November 1, Year 1. On December 1, Year 1, Chestnut pub

licly announced its plan to close a manufacturing division in New Jersey and move it to China, and the company's New Jersey employees were notified that their jobs would be eliminated. Also on December 1, Year 1, to ensure an orderly transition, management promised a termination bonus of $10,000 to any employee who remains with the company until his or her position is terminated in the fourth quarter of Year 2. Chestnut estimates it will pay termination bonuses to 120 employees at the end of Year 2, for a total of $1,200,000. The present value of the estimated termination bonus is $1,000,000.
Required:
Determine the provision that should be recognized for Chestnut's restructuring plan. Identify the dates on which journal entries should be made and the amounts to be recorded.
Business
1 answer:
prohojiy [21]2 years ago
5 0

Answer:

Company by informing employees about termination is creating constructive obligation. Company should therefore provide for restructuring costs calculated as PV of estimated termination bonus which is based on number of employees would accept the offers. The provision for expenses should be recognized on December 1 of year 1

      Journal entry to record provision for restructuring costs

Date                  General Journal                       Debit                 Credit

01/Dec/Year 1    Restructuring expenses        $1,000,000

                                Provision for termination of benefits      $1,000,000

                           (To record provision for restructuring costs)

You might be interested in
Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one m
avanturin [10]

Answer and Explanation:

The computation is shown below:

a. The productivity in terms of sales revenue / labor expense:

Sales revenue = Units sold × sales price

= 1,217 × $1,700

= $2,068,900

Labor expense = Total labor hours × wage rate

= 4,6672 × $12

= $560,064

Now sales revenue to labor expense is

= $2,068,900 ÷ $560,064

= 3.69

2. Total productivity

As we know that

Total productivity =Output ÷ (labor + material + energy)

= ($2,068,900) ÷ ($560,064 +  $60,000 + $4,000)

= $2,068,900 ÷ $624,064

= $3.315

3 0
2 years ago
Increasing the amount of insurance coverage on your vehicle is part of which phase of risk management?
KATRIN_1 [288]

The phase of Identifying risks is when we increase the amount of insurance coverage on one's vehicle.

<h3>What is a Risk Management?</h3>

A Risk Management refers to the identification, analysis and response to risk factors that affects a business, entity etc

Thus, the increasing of the amount of insurance coverage is in the phase of Identifying risks because the its leads to coverage of identified additional risk on the vehicle.

Therefore, the Option D is correct.

Read more about Risk Management

<em>brainly.com/question/13760012</em>

8 0
2 years ago
Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Wal
Musya8 [376]

Answer:

b. country culture

Explanation:

These are options for the question

a. generational cohort characteristics.

b. country culture.

c. a red/blue marketing campaign.

d. the Walmart Effect.

e. regional culture.

b. country culture.

From the question we are informed about Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. In this case These purchases were indicative of country culture. Country Cultures are things that make one countries different from each other in term of cultural activities as well as cultural rituals these could be materials, belief as well as values

7 0
2 years ago
______ power results from one's specialized information.
Arisa [49]

The answer is C- Expert.

7 0
3 years ago
XYZ Corp owns a 3-year $10 million par floating rate bond. The coupons on the bond are 12-month LIBOR. XYZ would like to hedge a
malfutka [58]

Answer:

 2.45%

Explanation:

The computation of the fixed rate is shown below:

Years to maturity   Zero coupon  bond price  YTM      Forward rate

1                                 0.99                     1.01%  

2                                      0.97                             1.53%       2.06%

3                                      0.93                            2.45%     4.30%

The fixed rate should be equivalent to the YTM of the 3 year bond i.e. 2.45% the same is to be considered

3 0
3 years ago
Other questions:
  • In a tiny village, on the coast of South America, early inhabitants used sea shells, as money. Some of these shells were very be
    8·1 answer
  • Michael will attend college in 5 years. He anticipates he will need $19,000 to pay for the first year. He currently has $6,400 i
    6·2 answers
  • You must drive at a speed
    15·1 answer
  • ‘Bottom of the pyramid’ innovation refers to ancient Egyptian approaches to new
    10·1 answer
  • A yearly statement of the financial condition, progress, and expectations of an organization
    15·2 answers
  • In spending all his income on beer and pizza, Fred finds that the marginal utility of the last pizza he consumed is 8, and the m
    8·2 answers
  • A laptop computer that you want to purchase was originally priced at $1225. You will receive a 20% student discount, and the sal
    13·1 answer
  • Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%. A person can work u
    7·1 answer
  • Bryant leased equipment that had a retail cash selling price of $690,000 and a useful life of six years with no residual value.
    7·1 answer
  • DellceCon is considering selling its delicious ice-cream cones using stands along Hot Beach, which is 5 miles long. According to
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!