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Champion Contractors completed the following transactions involving equipment. Year 1 JAN. 1 Paid $250,000 cash plus $10,320 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 $25,800 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $7,000 to install air conditioning in the loader to enable operations under harsher conditions. This Increased the estimated salvage value of the loader by another $2,100. Dec. 31 Recorded annual straight-line depreciation on the loader. Year 2 Jan 1 Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Yeb. 17 Paid $1,150 for minor repairs to the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. Paid $258,000 cash plus $10,320 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 $25,800 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Date General Journal Debit Credit Jan 1, Year 1 Paid $7,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $2,100. Note: Enter debits before credits. Date General Journal Debit Credit Jan 3, Year 1 Record entry Clear entry View general lournal Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, Year 1 Racord entry Clear entry Vinalommal Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. Date General Journal Debit Credit Jan 1, Year 2 Paid $1,150 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Date General Journal Debit Credit Feb 17 Year 2 Record online Clara Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, Year 2