49. Lance owns a rental home and claims depreciation expense on several associated assets. Which of the following is an exception to the 7-year property rule, if used in a residential rental property? a) Office furniture b) Appliances c) Files d) Safes 50. Lance claims depreciation expense on his rental home. What is the class life of a residential rental property? a) 39 years b) 31.5 years c) 27.5 years d) 18 years 51. Lance has heard depreciation expense for certain assets must be calculated using the straight line method (also called amortization). Which of the following should be amortized? a) Auto b) Computer c) Furniture d) Patent 52. Andy and Elaine are married and each has a business. In the current tax year, Andy made purchases of depreciable items in the amount of $31,000. Elaine purchased $69,000 in equipment. Andy's net income is $50,500. Elaine's net income is $90,000. Andy and Elaine's taxable income is $152,000. What is the combined amount of Section 179 expense deduction that would be allowed for the current tax year? a) $140,500 b) $100,000 c) $125,000 d) $140,000 53. Andy and Elaine purchased several business assets for which they plan to claim Section 179 expense deductions. Which of the following is incorrectly listed as asset types eligible for Section 179 expense deductions? a) Equipment b) Property acquired from a related person c) Machinery d) Furniture