Champion Contractors completed the following transactions involving equipment.

Year $1$

January $1$ Paid $$318,000$ cash plus $$12,720$ in sales tax and $$1,600$ in transportation $($F$0$B shipping point$)$ for a new

loader. The loader is estimated to have a four$-$year life and a $$31,800$ salvage value. Loader costs are

recorded in the Equipment account.

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.$

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

Year $2$

January $1$ Paid $$4,400$ to overhaul the loader's engine, which increased the loader's estimated useful life by two

years.

February $17$ Paid $$1,100$ 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.