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During the annual maintenance and inspection of the plant's AC system, it was discovered that one of our AC units required a major repair. The

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During the annual maintenance and inspection of the plant's AC system, it was discovered that one of our AC units required a major repair. The maintenance and inspection costs were $2,200. The repair is estimated to have extended the useful life of the unit by 3 years and cost $5,600. How should these costs be recorded? O $7,800 should be recorded as a repairs and maintenance expense. O $7,800 should be recorded as a capital expenditure. O $2,200 should be recorded as a capital expenditure and $5,600 should be recorded as a repairs and maintenance expense. O $2,200 should be recorded as a repairs and maintenance expense and $5,600 should be recorded as a capital expenditure

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