Dolatabadi & Kim Enterprises, Inc. just paid $$350,000$ to purchase new manufacturing equipment. The equipment will be depreciated on a straight$-$line basis to a value of $$50,000$ over its $8-$year useful life. What will be the equipment$$s net book value at the end of year $3?$

A$)$ $$43,750$ B$)$ $$275,000$ C$)$ $$237,500$ D$)$ $$306,250$ E$)$ $$218,750$

$6.$ Assume both current and deferred taxes are positive values. Given this, deferred taxes will

A$)$ reduce the current tax expense and thus increase net income. B$)$ increase expenses and increase operating cash flows.

C$)$ reduce net income but not affect the operating cash flows. D$)$ increase expenses and lower operating cash flows.

E$)$ reduce both net income and operating cash flows.

$7.$ Which of the following would normally involve an annuity due?

A$)$ A term loan

B$)$ A rental contract

C$)$ A savings account

D$)$ A US corporate bond E$)$ A preferred stock