Recently,companies Have Been Ordered by Governmental Agencies to Clean Up

Multiple Choice

Recently,companies have been ordered by governmental agencies to clean up environmental damages caused by business operations.How should costs incurred in these situations be treated?

A) If a legal obligation exists,the cost of restoring the property must be added to the asset account.
B) They should be treated as an expense entirely in one accounting period.
C) They should be treated as an amortized expense in the period the cost is incurred.
D) They should be added to the asset and then depreciated over 15 years.