Brotonne Inc. is a Delaware corporation in the business of manufacturing engravable metal pet identification collar tags, with multiple facilities located throughout the northeastern United States. Over the past five years, Brotonne Inc.'s profits have steadily declined as consumer preferences have shifted away from Brotonne's products in favor of Bluetooth smart pet-tag products.

Management has begun initiatives to turn the company around, including restructuring operations and targeted cost reductions. As a result, Brotonne will be shutting down its facilities in Buffalo, N.Y., and Watertown, N.Y. At the company's fiscal year-end, 12/31/Y19, Brotonne's senior accountant must determine the impact of Brotonne's planned facility disposals on the company's financial statements (assume that no entries have yet been recorded for December Year 19). Management has determined that the shutdowns do not qualify as discontinued operations.

Using the exhibits, determine the amount of liabilities arising from exit costs that Brotonne should accrue at 12/31/Y19 related to each shutdown. In column C, enter the amount of the accrual associated with the item listed in column B for the facility shown in column A. Round answers to the nearest whole dollar. Enter amounts that increase the company's liabilities as positive numbers (credits). Enter amounts that decrease the company's liabilities as negative numbers (debits). If a value is zero, enter a zero (0). Assume any present value implications to be immaterial and that Brotonne will not, under its accounting policy, include a time-value adjustment for immaterial amounts at 12/31/Y19

The purpose of this memo is to document the key dates of management's actions and communications regarding the shutdown of the Buffalo, N.Y., and Watertown, N.Y., facilities. - Month of October, Year 19_Senior management prepares and explores multiple plans to cut costs and restructure its operations. Buffalo, N..Y - November 14, Year 19_Board of directors approves Plan 3-B, under which the Buffalo, N.Y., facility will be shut down during Year 20, and subsequently sold, along with all associated equipment. - December 16, Year 19-Senior management and Human Resources meet with all employees and communicate details of the Plan to the employees. Notification letters are provided to employees at this time. All employees' employment will terminate with the shutdown of the facility in Year 20 , as identified in the Plan. - December 17, Year 19-Management provides written notice to Falcon-Hawk Services LLC regarding Brotonne Inc.'s intent to terminate the service contract for site management and security services in place for the Buffalo facility as of February 28, Year 20. - December 23, Year 19-Management provides written notice to Riose Industrial Services Corp. regarding Brotonne Inc.'s intent to terminate the service contract in place for the Buffalo facility as of February 28, Year 20. - December 30, Year 19-Senior management met with the company's legal counsel and sale broker to identify any potential indicators of significant change needed to Plan 3-B to execute the shutdown. No indicators were noted. - February 27, Year 20 -Last day of production and operation at the Buffalo facility. - February 28, Year 20-Buffalo facility will be shut down and closed. Brotonne will cease usage of and access to the facility by 7:00 p.m. EST. - November 15, Year 20-Buffalo facility will be sold to a third party. Watertown, N.Y. - December 3, Year 19-Board of directors approves Plan 3-C, under which the Watertown, N.Y., facility will be shut down during Year 20. The company does not own property, plant, or equipment at the Watertown facility. All leases are operating leases that will terminate on June 30 , Year 20 , without penalty. - December 15 , Year 19-Senior management and Human Resources meet with the plant controller, Yasmina Jass, to inform her of the closing of the facility. Management and the controller sign an agreement whereby the controller will be relocated to the Norwalk, Conn., facility effective July 21 , Year 20 . The meeting is confidential and meeting participants are instructed not to discuss the planned shutdown with other employees before the company makes a formal announcement. - December 17, Year 19-Management provides written notice to Falcon-Hawk Services LLC regarding Brotonne Inc.'s intent to terminate the service contract for site management and security services in place for the Watertown facility as of December 20 , Year 19. - December 21, Year 19_-The company ceases using the services provided by Falcon-Hawk Services LLC under the Watertown service agreement. - December 30, Year 19-Senior management met with the company's legal counsel and sale broker to identify any potential indicators of significant change needed to Plan 3-C to execute the shutdown. No indicators were noted. - January 7, Year 20-Senior management and Human Resources meet with all employees and communicate details of the Plan to them. Notification letters are provided to employees at this time. The employees' employment will terminate with the shutdown of the facility in Year 20 , except for the plant controller. - June 15, Year 20_Last day of production and operation at the Watertown facility. - June 30, Year 20-Watertown facility will be shut down and closed. Brotonne will cease usage of and access to the facility at 7:00 p.m. EST. This contract is entered into between Brotonne Inc. (Customer) and Riose Industrial Services Corp. (RISC) as of December 1 , Year 17. 2.0 Services 3.0 Term 5.0 Fees and Payment The fees for Services rendered under this agreement shall be $10,000 per month for the Term of this contract. 9.0 Termination This contract may be terminated by Customer by providing 60 days' advance written notice to RISC. two full calendar months following the date of notice. Such period of time from the date of notice through the end of the second full calendar month shall be referred to as the "Wind-Down Period." contract term as specified in section 3.0. NOTE TO FILE As part of the agreement signed by management and Ms. Jass, she will be relocated from the Watertown, N.Y., facility to the Norwalk, Conn., facility effective July 21 , Year 20. We have agreed to pay for and/or reimburse Ms. Jass for the costs of relocation, including costs to move her household effects, costs of house-hunting trips, and closing costs on the sale and/or purchase of a house, up to a total of $50,000. - We signed a contract on December 28 , Year 19, with an interstate moving company to relocate Ms. Jass' household effects from Watertown, N.Y., to Norwalk, Conn., in Year 20 . The estimated cost for this move is expected to be $9,500, and a nonrefundable deposit of $1,000 was due upon signing. Accounts Payable will process the payment for the deposit with its next check run on January 4. - Ms. Jass made a house-hunting trip to Norwalk during the week of December 22-29, Year 19. She has provided us with receipts for transportation costs, hotel lodging, and engaging a broker, totaling $1,492. - Based on other employee relocations we have done in the past, we expect that, if Ms. Jass sells her current home, the closing costs on the sale will be approximately $7,500. - Based on the current cost of housing in Norwalk, if Ms. Jass purchases a new home in Norwalk (rather than renting an apartment), her closing costs are estimated to be approximately $25,000. Employee Salary and Hourly Rate Listing-Buffalo, N.Y., and Watertown, N.Y., Facilities Note: All employees work a full-time work week of 40 hours. Note: All employees work a full-time work week of 40 hours. Facility Asset Listing Detail Brotonne INC. Plant: 008 Location: Buffalo, N.Y. The purpose of this memo is to document the key dates of management's actions and communications regarding the shutdown of the Buffalo, N.Y., and Watertown, N.Y., facilities. - Month of October, Year 19_Senior management prepares and explores multiple plans to cut costs and restructure its operations. Buffalo, N..Y - November 14, Year 19_Board of directors approves Plan 3-B, under which the Buffalo, N.Y., facility will be shut down during Year 20, and subsequently sold, along with all associated equipment. - December 16, Year 19-Senior management and Human Resources meet with all employees and communicate details of the Plan to the employees. Notification letters are provided to employees at this time. All employees' employment will terminate with the shutdown of the facility in Year 20 , as identified in the Plan. - December 17, Year 19-Management provides written notice to Falcon-Hawk Services LLC regarding Brotonne Inc.'s intent to terminate the service contract for site management and security services in place for the Buffalo facility as of February 28, Year 20. - December 23, Year 19-Management provides written notice to Riose Industrial Services Corp. regarding Brotonne Inc.'s intent to terminate the service contract in place for the Buffalo facility as of February 28, Year 20. - December 30, Year 19-Senior management met with the company's legal counsel and sale broker to identify any potential indicators of significant change needed to Plan 3-B to execute the shutdown. No indicators were noted. - February 27, Year 20 -Last day of production and operation at the Buffalo facility. - February 28, Year 20-Buffalo facility will be shut down and closed. Brotonne will cease usage of and access to the facility by 7:00 p.m. EST. - November 15, Year 20-Buffalo facility will be sold to a third party. Watertown, N.Y. - December 3, Year 19-Board of directors approves Plan 3-C, under which the Watertown, N.Y., facility will be shut down during Year 20. The company does not own property, plant, or equipment at the Watertown facility. All leases are operating leases that will terminate on June 30 , Year 20 , without penalty. - December 15 , Year 19-Senior management and Human Resources meet with the plant controller, Yasmina Jass, to inform her of the closing of the facility. Management and the controller sign an agreement whereby the controller will be relocated to the Norwalk, Conn., facility effective July 21 , Year 20 . The meeting is confidential and meeting participants are instructed not to discuss the planned shutdown with other employees before the company makes a formal announcement. - December 17, Year 19-Management provides written notice to Falcon-Hawk Services LLC regarding Brotonne Inc.'s intent to terminate the service contract for site management and security services in place for the Watertown facility as of December 20 , Year 19. - December 21, Year 19_-The company ceases using the services provided by Falcon-Hawk Services LLC under the Watertown service agreement. - December 30, Year 19-Senior management met with the company's legal counsel and sale broker to identify any potential indicators of significant change needed to Plan 3-C to execute the shutdown. No indicators were noted. - January 7, Year 20-Senior management and Human Resources meet with all employees and communicate details of the Plan to them. Notification letters are provided to employees at this time. The employees' employment will terminate with the shutdown of the facility in Year 20 , except for the plant controller. - June 15, Year 20_Last day of production and operation at the Watertown facility. - June 30, Year 20-Watertown facility will be shut down and closed. Brotonne will cease usage of and access to the facility at 7:00 p.m. EST. This contract is entered into between Brotonne Inc. (Customer) and Riose Industrial Services Corp. (RISC) as of December 1 , Year 17. 2.0 Services 3.0 Term 5.0 Fees and Payment The fees for Services rendered under this agreement shall be $10,000 per month for the Term of this contract. 9.0 Termination This contract may be terminated by Customer by providing 60 days' advance written notice to RISC. two full calendar months following the date of notice. Such period of time from the date of notice through the end of the second full calendar month shall be referred to as the "Wind-Down Period." contract term as specified in section 3.0. NOTE TO FILE As part of the agreement signed by management and Ms. Jass, she will be relocated from the Watertown, N.Y., facility to the Norwalk, Conn., facility effective July 21 , Year 20. We have agreed to pay for and/or reimburse Ms. Jass for the costs of relocation, including costs to move her household effects, costs of house-hunting trips, and closing costs on the sale and/or purchase of a house, up to a total of $50,000. - We signed a contract on December 28 , Year 19, with an interstate moving company to relocate Ms. Jass' household effects from Watertown, N.Y., to Norwalk, Conn., in Year 20 . The estimated cost for this move is expected to be $9,500, and a nonrefundable deposit of $1,000 was due upon signing. Accounts Payable will process the payment for the deposit with its next check run on January 4. - Ms. Jass made a house-hunting trip to Norwalk during the week of December 22-29, Year 19. She has provided us with receipts for transportation costs, hotel lodging, and engaging a broker, totaling $1,492. - Based on other employee relocations we have done in the past, we expect that, if Ms. Jass sells her current home, the closing costs on the sale will be approximately $7,500. - Based on the current cost of housing in Norwalk, if Ms. Jass purchases a new home in Norwalk (rather than renting an apartment), her closing costs are estimated to be approximately $25,000. Employee Salary and Hourly Rate Listing-Buffalo, N.Y., and Watertown, N.Y., Facilities Note: All employees work a full-time work week of 40 hours. Note: All employees work a full-time work week of 40 hours. Facility Asset Listing Detail Brotonne INC. Plant: 008 Location: Buffalo, N.Y