The Mountaineers are a nationally recognized football team that recently purchased gym equipment for $$100,000$ cash. The

equipment had an estimated useful life of ten years and a $$7,000$ salvage value. At the beginning of the fourth year of use, the

company spent an additional $$25,000$ related to the equipment. The company's financial condition just prior to this expenditure is

shown in a horizontal statements model.

Required

Record the $$25,000$ expenditure in a horizontal statements model under each of the following independent assumptions:

a$.$ The expenditure was for routine maintenance.

b$.$ The expenditure extended the equipment's life.

c$.$ The expenditure improved the equipment's operating capacity.

Note: In the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or

financing activities $($FA$).$ Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no

input is needed.

Answer is not complete.