Problem 10-4A (Algo) Computing and revising depreciation; revenue and capital expenditures LO C1, C2, C3 Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $298,000 cash plus $11,920 in Sales tax and \$2,000 in transportation (Fo8 shipping point) for a new loader. The loader is estimated to have a four-year life and o $29,800 salvage value. Loader costs are racorded in the Equiphent account. lanwary 3. Pald 36,000 to insta11 air conditioning in the Yoader to enable operations under harsher conditions. Mis increased the estinated salvage value of the loader by another $1,800. Decenber 31 Reconded annual straight-iine depreciation on the loader. Year 2 January 1 Paid $4,180 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Fobruary 17 Peid $1,025 for ninor repairs to the loaden after the operator backed it into a tree. Decenter 31 hecorded annual straight-1ine depreciation on the poader. Required: Prepare journal entrles to record these transactions and events