Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,000 (original cost of $28,000 less accumulated depreciation of $16,000) and a fair value of $9,000. Kapono paid $20,000 cash to complete the exchange. The exchange has commercial substance. 1. Useful life is 7 years, no salvage life. Left 3 years. 2. Create depreciation table SL then use similar for different depreciation. Use function to calculate depreciation. Create chart for depreciation and compare between more than one method of depreciation in one chart. Depreciation Table Straight line Years: Depreciation : Accumulated depreciation: 3. Comment about your answer If he has to use the old equipment or should exchange or keep old one ?