Sellers Construction Company purchased a compressor for $106,000 cash. It had an estimated useful life of four years and a $12,000 salvage value. At the beginning of the third year of use, the company spent an additional $8,490 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Income Statement Stockholders' Equity Balance Sheet Assets Book Value of Compressor 59,000 Statement of Cash Flows Cash + - Com. Stk. + Ret. Earn. Rev. Exp. = Net Inc. 11,820 + 24,100 + 46,720 NA NA NA NA Required Record the $8,490 expenditure in the statements model under each of the following independent assumptions: (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. Sellers Construction Company Horizontal Statements Model Balance Sheet Income Statement Assets Statement of Cash Flows Revenue Expenses Net Income Cash Stockholders' Equity Common Retained Stock Earnings 24,100 + 46,720 Book Value of Compressor 59,000= 11,820 + a. + = + b. + = + C. + +