That will wipe everything out of it and it will be as empty as the day you got it.
When you log into your new Chromebook with the gmail address that you have been using on the old Chromebook. Everything will be there.
The only thing that you lose is what ever was in the download folder of the old Chromebook.
So those things will have to be saved on a flash-drive, memory card, or a web server. If you want them.
To do a Powerwash on the old Chromebook.
Go into Settings.
Go down to Advanced and click Advanced.
Go down to Powerwash, it is at the bottom.
Click Powerwash and it will lead you into the Empty Zone.
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