southern company owns a building that it leases to others. the building's fair value is $1,400,000 and its book value is $800,000 (original cost of $2,000,000 less accumulated depreciation of $1,200,000). southern exchanges this for a building owned by the eastern company. the building's book value on eastern's books is $950,000 (original cost of $1,600,000 less accumulated depreciation of $650,000). eastern also gives southern $140,000 to complete the exchange. the exchange has commercial substance for both companies.