Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $21,000 (original cost of $46,000 less accumulated depreciation of $25,000) and a fair value of $10,800. Kapono paid $38,000 cash to complete the exchange. The exchange has commercial substance. Required: 1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? 2. Assume the fair value of the old tractor is $32,000 instead of $10,800. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? Loss on exchange Initial value of new tractor $ $ 4,600 26,000 Required 1 Required 2 >