Which of the Following Statements Is True of a Life

question 37

Multiple Choice

Which of the following statements is true of a life estate?

• A) It gives a person the right to have someone who owns an adjoining piece of property refrain from making certain uses of his or her land.
• B) It does not hold a person owning a life estate liable if he commits acts that will result in permanent injury to the property.
• C) It gives a person the right to use property for an indefinite period.
• D) It gives a person the right to use property only for his own lifetime or for a time that is measured by the lifetime of somebody else.

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life, often considered in depreciation calculations.

Depreciation Expense

The cost allocated to reflect the reduction in value of a tangible asset over its useful life, as part of the wear and tear or obsolescence.

Depreciation

A method of allocating the cost of a physical or tangible asset over its expected usable life to account for decreases in value over time.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life.