Beeman Company exchanged machinery with an appraised value of $3,532,000, a recorded cost of $5,364,000 and accumulated depreciation of $2,682,000 with Lacey Corporation for machinery Lacey owns. The machinery has an appraised value of $3,369,500, a recorded cost of $6,470,000, and accumulated depreciation of $3,558,500. Lacey also gave Beeman $162,500 in the exchange. Assume depreciation has already been updated.