On january 1, innovative solutions, inc. issued $150,000 in bonds at face value. the bonds have a stated interest rate of 6 percent. the bonds mature in 10 years and pay interest once per year on december 31. required: complete the required journal entries to record the bond issuance, interest payment on december 31, early retirement of the bonds. assume the bonds were retired immediately after the first interest payment at a quoted price of 101. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

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?