Chiquita Corp

question 75

Multiple Choice

Chiquita Corp. purchased a large area of land with the intention to transform it into a banana plantation. Before the new seedlings can be planted, the site, which is prone to flooding, must be drained. The cost of the draining should be

• A) capitalized as part of the cost of the land.
• B) expensed only after the first crop of bananas has been harvested.
• C) expensed immediately.
• D) reported as loss from discontinued operations.

---

Definitions:

Full Strict Scrutiny

A stringent form of judicial review that courts use to determine the constitutionality of certain laws, requiring the law to be necessary to achieve a compelling governmental interest.

Gender Discrimination

Unfair or unequal treatment of individuals based on their gender, affecting opportunities, resources, and benefits.

Full Strict Scrutiny

A legal standard used to determine the constitutionality of certain laws, requiring that the law be narrowly tailored to achieve a compelling governmental interest.

Intermediate Scrutiny

A standard of review used by courts to evaluate laws that involve discrimination on the basis of gender or illegitimacy, requiring the law to further an important government interest.