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

2017

Jan.1Paid $286,000 cash plus $11,440 in sales tax and $1,800 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $28,600 salvage value. Loader costs are recorded in the Equipment account.Jan.3Paid $4,000 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 $1,200.Dec.31Recorded annual straight-line depreciation on the loader.

2018

Jan.1Paid $5,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years.Feb.17Paid $1,250 to repair the loader after the operator backed it into a tree.Dec.31Recorded annual straight-line depreciation on the loader.

Required:

Prepare journal entries to record these transactions and events.