Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $278,000 canh plus $11,120 in soles tax and $1,800 in transportation (FoB shipping point) for a new loader. The loader is estimated to have a four-year 11 fe and a $27,800 salvage value. Loader costa are recorded in the Equipment account. January 3 Paid $4,000 to 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. December 31 Recorded annual atraight-1ine depreeiation on the loader. Year 2 January 1 Paid $4,200 to overhaul the loader's engine, which increased the loader's entimated useful 1 ife by two yearn. February 17 Paid $2,050 for minor repairi to the loader after the operator baoked it into a tree. December 31 Recorded annual atraight-line depreclation on the loader. Required: Prepare journal entries to record these transactions and events