Question 5

1. Tenant security deposits can be recorded as:

   	a.	Income when received.
   	b.	A liability by the lessor.
   	c.	No obligation by the lessor to return the deposit.
   	d.	Deductions in deposit by the tenant.
   	e.	All of the above.

Question 6

1. An absolute triple net lease requires the tenant to pay the following:

   	a.	None of the expenses of the property.
   	b.	Base rent and all operating expenses associated with the lease space, including structural costs.
   	c.	Some of the expenses of the property.
   	d.	Expenses that the property owner bills.

Question 7

1. Leasehold improvements made by the tenant are depreciated using which of the following methods:

   	a.	39 years.
   	b.	27.5 years.
   	c.	15 years.
   	d.	Over the term of the lease.
   	e.	Are not depreciated.

Question 8

1. If a lease is cancelled before the expiration term, unamortized lease costs become:

   	a.	Fully deductible in the year of cancellation.
   	b.	Never deductible.
   	c.	A capital loss.
   	d.	An addition to the basis of the new lease.