Champion Contractors completed the following transactions involving equipment.

Year $1$

January $1$ Paid $$262,000$ cash plus $$10,480$ in sales tax and $$1,600$ in transportation $($FOB shipping point$)$ for a new loader. The loader is estimated to have a four$-$year life and a $$26,200$ salvage value. Loader costs are recorded in the Equipment account.

January $3$ Paid $$3,000$ to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $$900.$

December $31$ Recorded annual straight$-$line depreciation on the loader.

Year $2$

January $1$ Paid $$4,000$ to overhaul the loader$$s engine, which increased the loader$$s estimated useful life by two years.

February $17$ Paid $$1,000$ 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.