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 (F0B shipping point) for a new loader. The loader is estinated to have a four-year life and a $26,200 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage vatue of the loader by another $1,500. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,700 to overhaut the loader's engine, which increased the loader's estinated useful life by two years. February 17 Paid $1,175 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the toader. Required: Prepore journal entries to record these transactions and events