Clarion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.
2010
Jan. 1
Paid $255,440 cash plus $15,200 in sales tax and $2,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four year life and a $34,740 salvage value. Loader costs are recorded in the Equipment account.
Jan. 3
Paid $3,660 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 $1,110.
Dec. 31 Recorded annual straight line depreciation on the loader.
1/1 Equipment 273140
Cash273140
1/3 Equipment 3660
Cash 3660
12/31 Depreciation Expense Equipment ?
Accumulated Depreciation Equipment ?