Two independent companies,WaterwayCo. andCarla VistaCo., 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 ofWaterway's Landand Carla Vista's Landare $541000and$360000

Fair value based upon appraisalofWaterway's Landand Carla Vista's Landare 800000and632000

The exchange was made, and based on the difference in appraised fair values,Carla Vistapaid $168000toWaterway. The exchange lacked commercial substance.

The new land should be recorded onWaterway's books at