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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 $19,500 (original cost of $43,000 less accumulated depreciation of $23,500 ) and a fair value of $10,500. Kapono paid $35,000 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 $575,000 and a fair value of $850,000. Kapono paid \$65,000 cash to complete the exchange. The exchange has commerciol substance. Required: 1. What is the amount of goin or loss that Kapono would recognize on the exchange? What is the intial value of the new tractor? 2. Assume the fair value of the old tractor is $29,000 instead of $10,500. What is the amount of gain or loss that Kopono would recognize on the exchange? What is the initial value of the new tractor? Complete this question by entering your answers in the tabs below. What is the amount of gain or loss that Kapono wovid recognize on the exchange? What is the inital value of the new tractor? 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 $19,500 (original cost of $43,000 less accumulated depreciation of $23,500 ) and a fair value of $10,500. Kapono paid $35,000 cash to complete the exchange. The exchange has commercial substance. Case 8. Kapono Farms exchanged 100 acres of farmland for similar tand. The farmland given had a book value of $575,000 and a fair value of $850,000. Kapono paid $65,000 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 now tractor? 2. Assume the fair value of the old tractor is $29,000 instead of $10,500. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? Complete this question by entering your answers in the tabs below. Assume the fair value of the old tractor is $29,000 instead of $10,500. What is the amount of gain or loss that Kapone would recognize on the exchange? What is the initial value of the new tractor

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