Sellers Construction Company purchased a compressor for $109,400 cash. It had an estimated useful life of four years and a $9,500 salvage value. At the beginning of the third year of use, the company spent an additional $7,850 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Balance Sheet Cash 11,250 + Assets Book Value of Compressor 59,450 Stockholders' Equity Common Retained Stock + Earnings 25,000 + 45,700 Income Statement Statement of Revenue - Expense = Net Income Cash Flows NA NA NA NA Required Record the $7,850 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. Sellers Construction Company Horizontal Statements Model Income Statement Net Revenue Statement of Cash Flows Expenses Income Balance Sheet Stockholders' Equity Common Stock Retained Earnings 59,450 = 25,000+ 45,700 Assets Book Value of Cash Compressor 11,250 + a. b. C.