Two independent companies, Vaughn 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: Vaughn's Land Cullumber's Land Cost and book value $570600 $279000 Fair value based upon appraisal 707400 629100 The exchange was made, and based on the difference in appraised fair values, Cullumber paid $78300 to Vaughn. The exchange lacked commercial substance. Vaughn should recognize a gain on this exchange of