Champion Contractors completed the following transactions involving equipment. Year 1 January 1 paid $250,000 cash plus $10,000 in sales tax and $2,900 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 rquipent account. January 3 paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. pecember 31 Recorded annual straight-1ine depreciation on the loader. Year 2 January, 1 Paid $4,300 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 paid $1,075 for minor repairs to the loader after the operator backed it into a tree. Peceaber 31 recorded annual straight-line depreciation on the loader. Required: Prepare journa entries to record these transactions and events. Answer is complete but not entirely correct. January 1 Paid $4,300 to overhaul the loader's engine, which increased the loader's estimated useful 11 fe by two years. February 17 Paid $1,075 for minor repairs to the loader after the operator backed it into a tree. pecember 31 Recorded annual straight-1ine depreciation on the loader. Required: Prepare journal entries to record these transactions and events. x Answer is complete but not entirely correct