Question

Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business 2016 an 1 Paid $258,00 cash plus $10,320 in sales tax and $1,800 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 an 3 Paid $3,00 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions This increased the estimated salvage value of the loader by another $900. Dec. 31 Recorded annual straight-line depreciation on the loader 2017 an. 1 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years Feb. 17 Paid $1,100 to repair 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.