Champion Contractors completed the following transactions involving equipment.

Year 1 January 1

Paid $270,000 cash plus $10,800 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 $27,000 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 $4,500 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.

Recorded annual straight-line depreciation on the loader.

*Please help me figure out the annual straight-line depreciation on the loader for year 2*