Eagle Moving Company purchased a new moving van on October 1, 2011. The cash price of the new van was $33,750, and the company received a trade-in allowance of $5,600 for a 2009 model. The balance was paid in cash. The 2009 model had been acquired on January 1, 2009, at a cost of $22,500. Depreciation has been recorded through December 31, 2010, on a straight-line basis, with three years of expected useful life and no expected salvage value. The exchange has no commercial substance.

Make journal entries to update the depreciation and to record the exchange of the moving vans.