Income statement information for Dimsum Corporation during 20x3 is as follows:
a. Administrative expenses, $110,000
b. Cost of goods sold, $440,000
c. Restructuring charge, $125,000
d. Cumulative effect of a change in inventory methods that decreased income (net of taxes, $28,000), $60,000.
e. Extraordinary loss from a storm (net of taxes, $10,000), $20,000.
f. Income taxes expense, continuing operations, $42,000.
g. Net sales, $1,015,000.
h. Selling expenses, $190,000
REQUIRED
1. Prepare Dimsum Corporation's income statement for 20x3, including earnings per share, assuming a weighted average of 200,000 shares of common stock outstanding for 20x3.
2. What is a restructuring charge, and why is it deducted before income from operations before income taxes?