What is the gain or loss related to the discounting

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Question 1: On October 1, 2016, Lavalon company sold merchandise to a buyer and received a 6-month 10% ?400,000 note receivable. On December 1, 2016, Lavalon indorsed the note to financial Guarantee Corporation at 12%. If the discounting was made on a without recourse basis (absolute sale), what is the gain or loss related to the discounting?

Reference no: EM132781354

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