Two independent companies, Concord Co. and Pharoah 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'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: Concord's Land Pharoah's Land Cost and book value $533000 $352000 Fair value based upon appraisal 713000 628000 The exchange was made, and based on the difference in appraised fair values, Pharoah paid $85000 to Concord. The exchange lacked commercial substance. The new land should be recorded on Pharoah's books at $692000. $352000. $607000. O $437000.