Answer:
a. Gain on sale of land  = $230,000
b. Loss on the exchange of the tractor = $5,400
c-1. Gain on Exchange of the tractor = $5,000
c-2. Initial value of new tractor = $35,600
Explanation:
a. What is the amount of gain or loss that Kapono would recognize on the exchange of the land?
This can be determined as follows:
<u>Details                                       Amount $     </u>
Fair value of land                       760,000 
Book value of land                   <u>(530,000) </u>
Gain (loss) on sale of land       <u> 230,000 </u>
b. What is the amount of gain or loss that Kapono would recognize on the exchange of the tractor? 
This can be determined as follows:
<u>Details                                       Amount $     </u>
Original Cost of Tractor                34,000 
Accumulated Depreciation         <u>(19,000)  </u>
Book Value of Tractor                <u>  15,000 </u>
Therefore, we have:
Loss on Exchange of the tractor = Fair value - Book Value of Tractor = $9,600 - $15,000 = $5,400
c. Assume the fair value of the old tractor is $20,000 instead of $9,600. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
c-1. Calculation of the amount of gain or loss that Kapono would recognize on the exchange
From part b, we have:
Book Value of Tractor = $15,000 
And, we have:
Fair Value = $20,000
Therefore, we have:
Gain on Exchange of the tractor = Fair value - Book Value of Tractor = $20,000 - $15,000 = $5,000
c-2. Calculation of the initial value of the new tractor
 This can be determined as follows:
Initial value of new tractor = Fair Value of tractor given + Cash paid = $9,600 + $26,000 = $35,600