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Champion Contractors completed the following transactions involving equipment. Year 1 Jan. ...

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Accounting

Champion Contractors completed the following transactions involving equipment. Year 1

Jan. 1 Paid $322,000 cash plus $12,880 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 $32,200 salvage value. Loader costs are recorded in the Equipment account.
Jan. 3 Paid $6,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800.
Dec. 31 Recorded annual straight-line depreciation on the loader.

Year 2

Jan. 1 Paid $4,000 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
Feb. 17 Paid $1,000 for minor repairs to 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.

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