Exhibit 10-1 Two Construction Companies, Fargo and Rambam, Are in the Construction

Exhibit 10-1 Two construction companies, Fargo and Rambam, are in the construction business.Each owns a tract of land being held for development, but each company believes that the other's land is better suited to enhance the success of each planned development.Accordingly, they agree to exchange their land and have the following information:
$\begin{array}{lll}&\text {Fargo's}&\text { Rambam's}\\&\text {Land}&\text {Land}\\\text { Cost and book value } & \$ 400,000 & \$ 250,000 \\\text { Fair value based upon appraisal } & \$ 500,000 & \$ 450,000\end{array}$ The exchange of land was made, and based on the difference in appraised fair value, Rambam paid $50, 000 cash to Fargo.
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Refer to Exhibit 10-1.After the exchange, Fargo should record its newly acquired land on its books at

A) $300, 000
B) $400, 000
C) $450, 000
D) $500, 000