Champion Contractors completed the following transactions involving equipment Year 1 Jan. 1 Paid $318,000 cash plus $12,720 in sales tax and $1,800 in transportation (POB shipping point for a new loader. The londer is estimated to have a four-year lite and a $31,800 walvage value. Loader coats are recorded in the Equipment account. Jan. 3 Paid $5,000 to install air conditioning in the loader to enable operation under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. Dec. 31 Recorded annual straight-line depreciation on the loader. Year 2 Jan. 1 Paid $5,000 to overhaul the londer's engine, which increased the loader'. estimated useful life by two years. Feb. 17 Paid $1,250 for minor repairs to the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet 4 2 3 5