Eddie, the owner of a live-bait business in Oklahoma, inherited a 100-acre corn patch in 1980, when his daddy died. The FMV of the property was $3,000 when Eddie took possession, and its value did not change much until last year, when natural gas was discovered nearby. Last week, a major oil company offered Eddie $2 million for the parcel and he has decided it’s time to move to Chicago to be closer to his cousin-in-law, Clark. A Realtor has found for Eddie a 10-unit apartment house in Illinois priced at $1,900,000 and urged him to engage a Qualified Intermediary and consummate a like-kind exchange under section 1031 of the Internal Revenue Code. Although Ed’s not exactly sure what a 1031 exchange is or how it works, it sounds like a good idea to him and he went ahead with the transaction. Assuming both properties changed hands at the values listed above, and all the requirements for a valid 1031 exchange were met, what are the tax consequences of the transaction to Eddie?