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 DepreciationEquipment