[The Following Information Applies to the Questions Displayed Below

question 144

Multiple Choice

[The following information applies to the questions displayed below.]
An analysis of changes in selected balance sheet accounts of Hierarchy Corporation shows the following for the current year:
Hierarchy's income statement for the current year includes a $9,600 gain on disposal of plant assets.All payments and proceeds relating to purchase or sale of plant assets were in cash.
-Total cash proceeds received by Hierarchy from sales of plant assets during the current year amounted to:

• A)$696,000.
• B)$705,600.
• C)$633,600.
• D)$768,000.

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Definitions:

Pollutants

Substances introduced into the environment that cause harm or discomfort to the ecosystem or living organisms.

Corrective Taxes

Taxes implemented to correct the market outcomes that are not efficient by internalizing external costs, often used in environmental policy to address pollution.

Regulations

Standards and rules formulated by governmental or nongovernmental organizations to govern conduct within certain spheres of activity.

Pollution Permits

Marketable permits allowing holders to emit a certain amount of pollution, used as a regulatory tool to control environmental impacts.