When you did the exchange, a form 8824 was filed to show the exchange and the basis of the new property. This amount should have been used in the depreciation calculations (tax cost basis) of the new property. If you use those schedules to show your cost and accumulated depreciation, you will be reporting the correct basis in the acquired property. Be sure that you also include any of the basis that may have been classified or allocated to land cost, many times this is not included on a depreciation schedule as it is not depreciable.
