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In 20x5, a company is planning a major restructuring that will likely take place in 20x6. The total estimated cost of the restructuring is $1,250,000.
In 20x5, a company is planning a major restructuring that will likely take place in 20x6.
The total estimated cost of the restructuring is $1,250,000. Details of the restructuring
will not be formally announced until after the board of director meeting, which is to be
held in January 20x6.
Required - Determine whether or not this meets the definition of a restructuring, and if
so, prepare the December 31, 20x5 journal entry.
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