vork 7 Case A Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $15.500 (original cost of $35,000 less accumulated depreciation of $19,500) and a fair value of $9700 Kapono paid $27000 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 tractor? 2. Assume the fair value of the old tractor is $21,000 instead of $9,700 What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor