1. When a seller allows a buyer an amount for old equipment traded in for new equipment having a similar use, this amount is called
boot.
the trade-in allowance.
commercial substance.
None of these choices are correct.
2. The entry to record a gain on an exchange of similar assets would include a __________ to __________.
debit; Cash
debit; Gain on Exchange of Equipment
credit; Gain on Exchange of Equipment
credit; Accumulated Depreciation—Equipment