Eagle Company Owns a Tract of Land That It Purchased

Multiple Choice

Eagle Company owns a tract of land that it purchased in 2008 for $200,000. The land is held as a future plant site and has a fair market value of $280,000 on July 1, 2011. Hall Company also owns a tract of land held as a future plant site. Hall paid $360,000 for the land in 2010 and the land has a fair market value of $380,000 on July 1, 2011. On this date, Eagle exchanged its land and paid $100,000 cash for the land owned by Hall. The exchange had commercial substance. At what amount should Eagle record the land acquired in the exchange?

A) $280,000
B) $300,000
C) $320,000
D) $380,000