When exchanging equipment, if the trade-in allowance is greater than the book value a loss results.

Name: When exchanging equipment, if the trade-in allowance is greater than the book value a loss results.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

If the trade-in allowance is greater than the book value, there will be a gain as the company is getting more money than what the equipment is worth according to the books. A loss only results when the book value is greater than the trade-in allowance.

When Exchanging Equipment, If the Trade-In Allowance Is Greater Than