Chester Is Renting an Apartment,and He Has a Problem

question 9

Multiple Choice

Chester is renting an apartment,and he has a problem.All night he hears the scurrying of rodents,and each morning he finds cereal boxes and other cardboard food containers gnawed.He has also noticed droppings all over the apartment,including in the children's nursery.He has complained to the landlord,who simply replies,"Hey,this is center city-everybody has a rat problem." The landlord is breaching Chester's right to

• A) possession.
• B) quiet enjoyment.
• C) continuous control.
• D) habitability.

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Definitions:

Contingent Liability

A potential obligation that may arise depending on the outcome of a future event or set of circumstances.

Deferred Tax Liability

This is a tax obligation due in the future for income already recorded in the financial statements, resulting from temporary differences between accounting and tax treatments.

Goodwill

The excess amount paid over the fair value of net assets acquired in a business combination, representing intangible assets such as brand reputation or customer relationships.

Future Costs

Expenses that are expected to be incurred in the future, which can include operational expenses, capital expenditure, or other financial liabilities.