On April 1, 20X1, Axis Corporation acquired a delivery van for $60,000 cash. The van has a useful life of 6 years and a residual value of $6,000. Calculate the depreciation expense for the year 20X1 using the straight-line method.

Additionally, Axis Corporation made the following transactions during 20X1:

• July 1: Paid $5,000 for vehicle insurance.
• September 1: Exchanged a portion of the van for office furniture with a fair value of $10,000. The portion exchanged had a carrying amount of $12,000.

Required:

• Calculate the total depreciation expense for the year 20X1.
• Prepare journal entries for the van-related transactions.