Case A: Jones Corporation purchased some land, buildings, and machinery, for a total cash price of $50,000. At the date of the purchase these items were being carried on the books of the seller as follows: land, $15,000; building, $40,000, and machinery, $20,000. Just prior to the purchase, Jones Corporation had employed a valuation specialist to appraise the assets. The appraisal determined the following values land, $17,000; building, $16,000, and machinery, $33,000. Case B: Marshall Company exchanges a machine that cost $4,000 and has accumulated depreciation of $2,560 for a similar machine. Marshall also receives $25 in the exchange. The fair market value of the old asset is $750. The fair market value of the new asset is $725. There is no commercial substance to the transaction.