Sellers Construction Company purchased a compressor for $117,000 cash. It had an estimated useful life of four years and a $10,300 salvage value. At the beginning of the third year of use, the company spent an additional $9,770 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Balance Sheet = Stockholders' Equity Income Statement Assets Book Value of Common Retained Cash + 12,220 + Compressor = 63,650 = Stock + Earnings Revenue 25,900 + 49,970 NA Required - Statement of Expense Net Income Cash Flows NA = NA NA Record the $9,770 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 Balance Sheet Income Statement Assets Stockholders' Equity Book Value of Common Retained Revenue Expenses Net Income Statement of C Flows Cash Compressor Stock Earnings 12.220 63,650 25,900+ 49.970 a b