Required information Skip to question [The following information applies to the questions displayed below.] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $18,500 (original cost of $41,000 less accumulated depreciation of $22,500) and a fair value of $10,300. Kapono paid $33,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $565,000 and a fair value of $830,000. Kapono paid $63,000 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 of the tractor? 2. Assume the fair value of the old tractor is $27,000 instead of $10,300. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor