Two construction companies, Dakota and Carolina, are in the construction business. Each owns a tract of land being held for development, but each company believes that the other's land is better suited to enhance the success of each planned development. Accordingly, they agree to exchange their land and have the following information:

	Dakota's	Carolina's
	Land	Land
Cost and book value	$400,000	$250,000
Fair value based upon appraisal	$500,000	$450,000

The exchange of land was made, and based on the difference in appraised fair value, Carolina paid $50,000 cash to Dakota. After the exchange, Carolina should record its newly acquired land on its books at?

a). $300,000

b). $500,000

c). $400,000

d). $450,000