Handy Andy's Construction Company purchased a compressor for $112,400 cash. It had an estimated useful life of four years and a $8,600 salvage value. At the beginning of the third year of use, the company spent an additional $7,610 related to the equipment. The companys financial condition just prior to this expenditure is shown in the horizontal statements model. Required Record the $7,610 expenditure in the statements model under each of the following independent assumptions: (Not all cells require input.)

1 The expenditure was for routine maintenance.

2 The expenditure extended the compressors life.

3 The expenditure improved the compressor's operating capacity.