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The new land should be recorded on sandhil''s books at

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Two independent companies, Bonita style="color:inherit;"> Co. and Sandhill 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:

Cost and book value of Bonita's Land and Sandhill's Land are $535000 and $354000

Fair value based upon appraisal of Bonita's Land and Sandhill's Land are 715000 and 630000

The exchange was made, and based on the difference in appraised fair values, Sandhill paid $85000 to Bonita. The exchange lacked commercial substance.

The new land should be recorded on Sandhill's books at?

Reference no: EM132316672

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