Case B$.$ Kapono Farms exchanged $100$ acres of farmland for similar land. The farmland given had a book value of $$500,000$ and a fair value of $$700,000.$ Kapono paid $$50,000$ cash to complete the exchange. The exchange has commercial substance.

Required:

What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

Assume the fair value of the farmland given is $$400,000$ instead of $$700,000.$ What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

Assume the same facts as Requirement $1$ and that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

Assume the same facts as Requirement $2$ and that the exchange lacked commercial substance. Assume the fair value of the farmland given is $$400,000$ instead of $$700,000.$ What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?