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In June 1985,Joseph Marcantuone and Robert Gieson Purchased Property Located

question 15

Multiple Choice

In June 1985,Joseph Marcantuone and Robert Gieson purchased property located in East Orange,New Jersey.At the time of purchase,the property was partly occupied and leased to Carriage Trade Cleaners,a dry cleaning establishment.A number of dry cleaners continuously operated on this site since 1930.Marcantuone and Gieson owned and operated a grocery store on another section of the property.They have never personally owned or operated a dry cleaning establishment on the property.JRM,LLC,and Sang Hak Shin were tenants on the property and the last operators of the dry cleaning establishment that utilized the hazardous substance tetrachloroethylene,or perchloroethylene (PCE) ,during the time Marcantuone and Gieson owned the property.The city of East Orange acquired the property through condemnation for the purpose of building a school on the property.But,the PCE was discovered on the property and out of the $629,407 given to Marcantuone and Gieson as compensation for the taking,the city held back $182,035.20 for the cost of the PCE clean-up.It cost the city a total of $212,000 to complete the clean-up of the property.
-Who is liable for the remaining amount due for the clean-up?

Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies.

Investment Interest

Interest incurred on money borrowed to purchase or hold investment assets, potentially deductible against investment income for tax purposes.

Equity Method

A method of accounting where an investor records its investment in an associate company at original cost and subsequently adjusts the carrying amount for its share of the profit or loss and other comprehensive income of the associate.

Consolidation

The process of merging the financial statements of two or more entities into one, typically within a group comprising a parent company and its subsidiaries.