Champion Contractors completed the following transactions involving equipment.

Year 1

January 1	Paid $250,000 cash plus $10,000 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,000 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 $4,500 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
February 17	Paid $1,125 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.