Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $262,000 cash plus $10,480 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 $26,200 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $6,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,100 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual atraight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet < 3 4 5 Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Date December 31, Year 1 General Journal Debit Credit > Record entry Clear entry View general journal Prev 1 of 1 Next >