Two independent companies,BonitaCo. andSandhillCo., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the other'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:

Cost and book value of Bonita's Landand Sandhill's Landare $535000and$354000

Fair value based upon appraisalof Bonita's Landand Sandhill's Landare 715000and630000

The exchange was made, and based on the difference in appraised fair values,Sandhillpaid $85000toBonita. The exchange lacked commercial substance.

The new land should be recorded onSandhill's books at