49. Bev is the sole owner of Bev & Associates, an accrual basis corporation. In 2016, Bev & Associates has a bad year & Bev lends the corporation $50,000 to meet expenses. The corporation accrues interest expense of $5,000 on the loan from Bev, but does not pay the interest to her in cash. Bev & Associates can deduct the $5,000 of accrued interest expense on its 2016 corporate tax return.

True False

32. Choose the correct statement.

Residential real property is depreciated over 39 years. Nonresidential real property is depreciated over 27.5 years. Nonresidential real property is depreciated over 39 years. Depreciation on real property starts at the beginning of the year in which the property is placed in service.

19. To be depreciated, must an asset actually lose value each year?

Yes No