Under GAAP and the conservatism principle, losses on trade-ins are recognized and recorded but gains on trade-ins are not allowed.

Name: Under GAAP and the conservatism principle, losses on trade-ins are recognized and recorded but gains on trade-ins are not allowed.
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Under GAAP, both gains and losses on trade-ins are recognized and recorded. The conservatism principle does not prohibit recognizing gains; it requires that they be realized and verifiable.

Under GAAP and the Conservatism Principle, Losses on Trade-Ins Are