The following selected accounts and normal balances existed at year-end. Accounts receivable $46,000 Prepaid insurance 4,900 Land 53,000 Accounts payable 41,000 Notes payable 59,000 Retained earnings 15,000 Dividends 2,100 Fees earned revenue 68,000 Selling expenses 35,500 Administrative expenses 13,250 Miscellaneous expense 1,250 Make the four journal entries required to close the books. If an amount box does not require an entry, leave it blank.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?