Two independent companies, Swifty Co. and Cullumber 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: Swifty's Land Cullumber's Land Cost and book value $565200 $366300 Fair value based upon appraisal 720000 650700 The exchange was made, and based on the difference in appraised fair values, Cullumber paid $69300 to Swifty. The exchange lacked commercial substance. For financial reporting purposes, Swifty should recognize a pre-tax gain on this exchange of $0.

$154800

. $69300.

$14900.