Pet Treats, Inc. incurred the following costs during the year: An addition was added to the building at a cost of $72,000. To allow an improved flow of production, a new conveyor system was installed at a cost of $8,250. To allow better handling of large loads, a hydraulic lift system was installed on a truck at a cost of $6,750. The truck's engine was repaired at a cost of $2,250. The repairs did not increase