The income statement for the year 2018 of Fugazi Co. contains the following information:

Revenues		$ 70000
Expenses:
Salaries and Wages Expense	$ 45000
Rent Expense	12000
Advertising Expense	10000
Supplies Expense	6000
Utilities Expense	2500
Insurance Expense	2000
Total expenses		77500
Net income (loss)		$ ( 7500)

1. After the revenue and expense accounts have been closed, the balance in Income Summary will be

A. a credit balance of $ 70000.

B. a credit balance of $ 7500.

C. a debit balance of $ 7500.

D. $0.

2. The entry to close Income Summary to Retained Earnings includes

A. a credit to Retained Earnings for $ 7500.

B. a credit to Income Summary for $ 7500.

C. a debit to Revenue for $ 70000.

D. credits to Expenses totalling $ 77500.