Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a bookvalue of $590,000 and a fair value of $880,000 Kapono paid $68,000 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 land? 2. Assume the fair value of the farmland given is $472,000 instead of $880.000. What is the amount of galf or loss that Kapono would recognize on the exchange? What is the initial value of the new land? 3. 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? 4. Assume the same facts as Requirement 2 and that the exchange lacked commercial substance. Assume the fair value of the farmland given is $472.000 instead of $880,000 What is the amount of gain or loss that Kapono would recognize an the exchange? What is theinitial value of the new land