When an Asset Is Acquired by Trading in an Asset

question 19

Short Answer

When an asset is acquired by trading in an asset already owned in exchange for the new one, the amount received on the trade-in is called the---------- .

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Definitions:

Capacity Utilization

A metric used to measure the rate at which potential output levels are being met or used in the production process.

Publicly Held Corporation

A company that sells its stocks or shares to the public on at least one stock exchange.

Gross Investment

The total amount spent on new fixed investment plus replacement investment, without accounting for depreciation.

Net Investment

The total amount spent on new capital assets minus the depreciation on existing assets.