Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $262,000 cash plus $10,480 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 $26,200 salvage value. Loader costs are recorded in the Equipment account. Jan. 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. Dec. 31 Recorded annual straight-line depreciation on the loader. Year 2 Jan. 1 Paid $4,500 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,125 for minor repairs to the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. X 1 Paid $262,000 cash plus $10,480 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 $26,200 salvage value. Loader costs are recorded in the Equipment account. 2 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. 3 Recorded annual straight-line depreciation on the loader. 4 Paid $4,500 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. 5 Paid $1,125 for minor repairs to the loader after the operator backed it into a tree. 6 Recorded annual straight-line depreciation on the loader