Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange them. The following information for the two warehouses is available:

Denver Bristol

Cost $90,000 $45,000

Accumulated depreciation 55,000 25,000

Fair value 33,000 30,000

Bristol agrees to pay Denver $3,000 to complete the exchange.

Required: Assuming the transaction has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.