Champion Contractors completed the following transactions involving equipment Year 1 January 1 Paid $314,000 cash plus $12,560 in sales tax and $1,900 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $31,400 salvage value. Loader costs are recorded in the Equipment 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. account. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,900 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,225 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events.