Presented below is income statement information of the Schefter Corporation for the year ended December 31, 2021. Sales revenue $ 536,000
Salaries expense 90,300
Interest revenue 7,400
Advertising expense 12,250
Gain on sale of investments 10,100
Cost of goods sold 294,800
Insurance expense 15,650
Interest expense 4,200
Income tax expense 45,500
Depreciation expense 27,000
Required:
1. Prepare the necessary closing entries at December 31, 2013
2. Record the closure of revenue accounts.
3. Record the closure of expense accounts.
4. Record the transfer of the net profit.

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?