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Required information (The following information applies to the questions displayed below.) Case A. Kapono Farms exchanged an old tractor for a newer model. The old

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Required information (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 $12.000 foriginal cost of $28.000 less accumulated depreciation of 516,000) and a fair value of $9,000. Kapono paid $20.000 cash to complete the exchange. The exchange has commercial substance, Case B. Kapono Farms exchanged 100 acres of formand for similar tand. The farmland given had a book value of $500.000 and a fair value of $700,000. Kapeno paid $50,000 cash to complete the exchange. The exchange has commercial substance 1. What is the amount of gain or loss that Kapone would recognize on the exchange of the land? 2. Assume the fair value of the farmland given is $400,000 instead of 5700,000 What is the amount of gain or loss that Kapono would recognite on the exchange? What is the initial value of the new land 3. Assume the same facts as Requirement and that the exchange locked commercial substance What is the amount of gain or loss that Kupono would recognize on the exchange? What is the initial value of the new land? Complete this question by entering your answers in the tabs below Round 2 Required 1. What is the amount of gain or loss that Kapono would recognize on the exchange of the land? 2. 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? 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? Complete this question by entering your answers in the tabs below. Rege 1 Required 2 Required Assume the same facts as Requirement 1 and that the exchange lacked commercial substance. What is the amount of gain or loss that one would recognize on the exchange? What is the initial value of the new land? ots of wind 550 000

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