Answer :
A used PPE asset can typically be exchanged for a new one and is called trade-in. The trade-in allowance is the amount for which the buyer and seller have agreed to trade something in. The difference is paid by the buyer once this sum is deducted from the cost of the new asset.
Define trade in allowance.
The value given to a used car that a dealer accepts in trade from a customer in order to lower the leasing cost of another car is known as a trade-in allowance. The criteria for a trade-in allowance on a lease are the same as the criteria for a purchase of a car. The circumstance of a trade-in allowance occurs when a business disposes of old assets by exchanging them for new assets and receives an allowance.
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