Two independent companies, Sheridan Co. and Carla Vista 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:

		Sheridan's Land		Carla Vista's Land
Cost and book value		$534000		$363000
Fair value based upon appraisal		700000		637000

The exchange was made, and based on the difference in appraised fair values, Carla Vista paid $63000 to Sheridan. The exchange lacked commercial substance. The new land should be recorded on Sheridan's books at