Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $18,000 (original cost of $40,000 less accumulated depreclation of $22,000) and a falr value of $10,200. Kapono pald $32,000 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 falr value of the old tractor Is $26,000 Instead of $10,200. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the Initial value of the new tractor? Complete this question by entering your answers in the tabs below Required 1Required 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? Initial value of new tractor