Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.

2012
Jan.	1	Paid $270,000 cash plus $10,800 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $27,000 salvage value. Loader costs are recorded in the Equipment account.
Jan.	3	Paid $6,000 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800.
Dec.	31	Recorded annual straight-line depreciation on the loader.

2013
Jan.	1	Paid $4,400 to overhaul the loader