Sellers Construction Company purchased a compressor for $113,300 cash. It had an estimated useful life of four years and a $11,100 salvage value. At the beginning of the third year of use, the company spent an additional $9,410 related to the equipment. The company's financial condition just prior to this expenditure is shown in the horizontal statements model. Required Record the $9,410 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 Income Statement Statement of Cash Net Expenses Flows Income Balance Sheet Assets Stockholders' Equity Cash Book Value of Compressor Revenue Common Stock Retained Earnings Balance 12,620 + 62,200 = 22,000+ 52,820 + = 3. b. C. ++ On January 1, Year 1, Poultry Processing Company purchased a freezer and related Installation equipment for $66,600. The equipment had a three-year estimated life with a $4,200 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,200. Required Compute the depreciation expense for each of the four years, Year 1-Year 4. Depreciation Expense Year 1 $ 20,800 Year 2 $ 20,800 Year 3 Year 4