Two independent companies, Barnum Co. and Bailey Co., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the other company's land. They agree to exchange their land An appraiser was hired, and from her report and the companies' records, the following information was obtained Bamum's Land Bailey's Land Cost and book value Fair value based upon appraisal 80,000 The exchange was made, and based on the difference in fair values, Bailey paid S10,000 to Barmum $ 64,000 $40,000 70,000.