Problem 8-4A Computing and revising depreciation; revenue and capital expenditures LO C1, C2, C3 Champion Contractors completed the following transactions involving equipment Year 1 3an. I Paid \$340,000 cash plus $12,400 in sales tax and $2,000 in transportation (roo shipping point) for a nen loader. The loader is eitinated to have a four year life and a $31,000 salvage value. Loader costs are cecorded in the Gquipment account. 3an. I Paid $6,000 to insta11 air conditioning in the loader to enable operations whder harsher conditions. This increased the estimated salvage value of the losder by another 5 , tioo. Dec. 31 Recorded annuat straight-line depreciation on the loader. Year 2 3an. 1 Daid 34, 60e to overhanl the loader's engine, which Intreased the loader's estimated useful 1ife by two years. 1eb. 17 pald 31,150 for alnor repairs to the loader after the operator backed it into a tree. Dec. 31 Recorded anmual straight-1ine depreciation on the looder. Required: Prepare journal entues to record these transactions and events. Journal entry worksheet Pald 5310,000 cash plus $12,400 in sales tax and $2,000 in transportation (Fos shipping point) for a new loader. The loader is eutimated to have a fourvear life and a \$31,000 salvage value. Loader covts are recorded in the Equipment account