Exercise $8-17$B Effect of revenue expenditures versus capital expenditures on financial statements

Ford Construction Company purchased a forklift for $$150,000$ cash. It had an estimated useful life of four years and a $$10,000$ salvage value. At the beginning of the third year of use, the company spent an additional $$9,000$ that was related to the forklift. The company's financial condition just prior to this expenditure is shown in the following statements model.

$\backslash$table$[[$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of$],[$Cash Flow$]]],[,,$Assets,$=,,$k$.$ Ec$,$dity,,,,$],[$Cash$,+,$Book Value of Forklift,$=,$C$.$ Stk$.,+,$Ret. Earn.,Rev.,$-$ Exp.,$=,$Net Inc.$],[15,000,+,80,000,=,45,000,+,50,000,$NA$,$NA$,=,$NA$,$NA$]]$

Required

Record the $$9,000$ expenditure in the statements model under each of the following independent assumptions:

a$.$ The expenditure was for routine maintenance.

b$.$ The expenditure extended the forklift's life.

c$.$ The expenditure improved the forklift's operating capacity.