Thorp Construction Company purchased a compressor for $48,000 cash. It had an estimated useful life of four years and a $4,000 salvage value. At the beginning of the third year of use, the company spent an additional $5,000 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model:

Required: 

Record the $5,000 expenditure in the statements model under each of the following independent assumptions:

a. The expenditure was for routine maintenance. 

b. The expenditure extended the compressor's life. 

c. The expenditure improved the compressor's operating capacity.