During 2020, UVW Co. closed one of its manufacturing facilities as a result of a decision to materially change the scope of its business operations. Costs associated with the closure and related severance of employees totaled $100,000. UVW pays taxes at a rate of 25%. The impact of this activity on the 2020 income statement will be:

Multiple Choice

• a decrease in Operating Income of $75,000

• a decrease in Operating Income of $100,000

• an decrease in Other Income, net of $75,000

• an decrease in Other Income, net of $100,000