A construction company is considering purchasing a new crane from a distributor of such equipment. The distributor offers to provide the construction company with a few thousand dollars worth of credit on an old crane that the company would like to replace. This credit offered by the distributor is a:
a. trade-in allowance.
b. sale price.
c. seasonal discount.
d. trade discount.
e. cash discount.
Answer: a. trade-in allowance.