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 $16,000 (original cost of $36,000 less accumulated depreciation of $20.000) and a fair value of $9.800. Kapono paid $28,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged too acres of farmiand for similar land. The farmiand given had a book value of $540.000 and a fair value of $780.000. Kapono poid $58,000 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 inital value of the new fand? 2. Assume the fair value of the formiand given is $432.000 instead of $780,000. What is the amount of gain of 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 of 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 $432,000 instead of $780,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Case B. Kapono Farms exchanged 100 acres of farmiand for similar land. The farmland given had a book value of $540,000 and a fair value of $780,000 Kapono paid $58,000 cash to complete the exchange. The exchange has commercial substance. Required: 1. What is the amount of gain of loss that Kapono would recognize on the exchange? What is the initial value of the new iand? 2. Assume the fair value of the farmland given is $432,000 instead of $780.000. What is the amount of gain of 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 Iand? 4. Assume the same facts as Requirement 2 and that the exchange lacked commercial substance. Assume the fair value of the farmland given is $432,000 instead of $780,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Answer is not complete. Complete this question by entering your answers in the tabs below. Ascume the fair value of the farmland given is $432,000 instead of $780,000, What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? 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 $540,000 and a fair value of $780,000. Kapono paid $58,000 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 farmiand given is $432,000 instead of $780,000. 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 focts 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 volue 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 farmiand given is $432,000 instead of $780,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? (8) Answer is not complete. Complete this question by entering your answers in the tabs below. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial velue of the new land? Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $540,000 and a fair value of $780,000. Kapono paid $58,000 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 farmiand given is $432,000 instead of $780.000. 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 exchenge 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 commerclal substance. Assume the fair value of the farmiand given is $432,000 instead of $780,000. What is the amount of goin or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Q Answer is not complete. Complete this question by entering your answers in the tabs below. 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? 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 $432,000 instead of $780.000. 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 now land? 4. Assume the same facts as Requirement 2 and that the exchange lacked commercial substance. Assume the fali value of the farmland given is $432.000 instead of $780.000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Answer is not complete. Complete this question by entering your answers in the tabs below. Assume the same facts as Recuirement 2 and that the exchange lacked commercial substance. Assume the fair value of the farmiand given is 1432,000 instead of $780,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land