$1.$Paid $$322,000$ cash plus $$12,880$ in sales tax and $$1,700$ in transportation $($FOB shipping point$)$ for a new loader. The loader is estimated to have a four$-$year life and a $$32,200$ salvage value. Loader costs are recorded in the Equipment account.

$2.$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.$

$3.$Recorded annual straight$-$line depreciation on the loader.

$4.$Paid $$4,900$ to overhaul the loader$$s engine, which increased the loader$$s estimated useful life by two years.

$5.$Paid $$1,225$ for minor repairs to the loader after the operator backed it into a tree.

$6.$Recorded annual straight$-$line depreciation on the loader.