When a seller allows a buyer an amount for old equipment that is traded in for new equipment of similar use, this amount is known as boot.

Question

Quizplus · Accepted Answer

The correct term for the amount allowed for old equipment is trade-in value, not boot. Boot refers to additional consideration, such as cash or property, given to make up the difference in value between the old equipment and the new equipment.

When a Seller Allows a Buyer an Amount for Old