Sale or Exchange Bently Corporation can sell a warehouse for $800,000 that has a basis of $300,000. It has two replacement alternatives. It can purchase a replacement warehouse for $800,000 or it can make a direct exchange for another suitable warehouse. This property has a fair market value of only $725,000, but the owner will not pay anything additional for Bently's warehouse. Assume Bently uses a 40 percent combined federal and state marginal tax rate and an 8percent discount rate for all asset decisions. Assume either property would be depreciated evenly over 40 years. Should Bently sell the building at its fair market value and purchase the$800,000 property or should it make the exchange?