points

Sellers Construction Company purchased a compressor for $$107,700$ cash. It had an estimated useful life of four years and a $$11,900$ salvage value. At the beginning of the third year of use, the company spent an additional $$9,080$ related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model:

Required

Record the $$9,080$ expenditure in the statements model under each of the following independent assumptions:

Note: In the Statement of Cash Flows column, use the initials $"$OA$"$ for operating activities, $"$FA$"$ for financing activities, and $"$IA$"$ for investing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.

a$.$ The expenditure was for routine maintenance.

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

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

$\backslash$table$[[$Sellers Construction Company$],[$Horizontal Statements Model$],[,$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of Cash$],[$Flows$]]],[,$Assets,$=,$Stockholders' Equity,Revenue,$-,$Expenses,$=,\backslash$table$[[$Net$],[$Income$]]],[,$Cash,$+,\backslash$table$[[$Book Value of$],[$Compressor$]],\backslash$table$[[$Common$],[$Stock$]],+,\backslash$table$[[$Retained$],[$Earnings$]]],[,13,320,+,59,800,=,25,100,+,48,020,z^2,-,,=,,],[$a$.,,+,,=,,+,,,-,,=,,],[$b$.,,+,,=,,+,,,-,,=,,],[$c$.,,+,,=,,+,,,-,,=,,]]$