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Case A$.$ Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $$20,500($original cost of $$45,000$ less accumulated depreciation of $$24,500)$ and a fair value of $$10,700.$ Kapono paid $$37,000$ 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 $$585,000$ and a fair value of $$870,000.$ Kapono paid $$67,000$ cash to complete the exchange. The exchange has commercial substance.

Required:

What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?

Assume the fair value of the old tractor is $$31,000$ instead of $$10,700.$ What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?

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What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?

$\backslash$table$[[$Initial value of new tractor,$]]$