Sellers Construction Company purchased a compressor for $110,100 cash. It had an estimated useful life of four years and a $8,300 salvage value. At the beginning of the third year of use, the company spent an additional $7,350 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model. Rev. Exp. = Net Inc. Cash Flow Cash + Assets Book Value of Compressor 59,200 Equity = Com. Stk. + Ret. Earn. 22,900 48,700 12,400 + + NA NA = NA NA Required Record the $7,350 expenditure in the statements model under each of the following independent assumptions: (In the Cash Flow column, use the initials OA for operating activities, FA for financing activities, or IA for investing activity. If there is no effect on the Cash Flow, leave the cell blank. Enter any decreases to account balances with a minus sign.) a. The expenditure was for routine maintenance. b. The expenditure extended the compressor's life. c. The expenditure improved the compressor's operating capacity. Assets Stockholders' Equity Revenue Expenses Net Income Cash Flow Cash + Book Value of Compressor 59,200 = Common Stock + Retained Earnings 12,400 + 22,900 + 48,700 = a. + = b. + = + + + = + C. =