Remote Disposal Company Operates a Hazardous Waste Storage Facility

question 24

Multiple Choice

Remote Disposal Company operates a hazardous waste storage facility.Concerned that there may be a release of chemicals from the site,Remote sells the property to Serene Developers,Inc.If there is a release,Remote is most likely

• A)liable.
• B)not liable because the site was sold before the release.
• C)not liable because Remote was concerned about the release.
• D)not liable because Remote no longer operates the facility.

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Definitions:

Replacement Investment

Expenditures made to replace worn-out or outdated capital goods to maintain productive capacity.

Gross Investment

The total amount of investment in capital goods in an economy over a specific period, not accounting for depreciation.

Depreciation

A reduction in the value of an asset over time due to wear and tear or obsolescence.

Net Investment

The net expenditure on acquiring new capital assets after deducting the depreciation of the present capital assets.