6 Case A. Kapono Farms exchanged an old tractor for a newer model. The old...
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6 Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $20,000 (original cost of $44,000 less accumulated depreciation of $24,000) and a fair value of $10,600. Kapono paid $36,000 cash to complete the exchange. The exchange has commercial substance. 0.9 points 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 $30,000 instead of $10,600. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? eBook Complete this question by entering your answers in the tabs below Ask Required 1 Required 2 Print What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? References Initial value of new tractor Required 1 Required 2>
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