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What would be recorded as a gain on transfer of receivables

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Question - Crane Company assigns $5000000 of its accounts receivables as collateral for a $1.80 million 7% loan with a bank. Crane Company also pays a finance fee of 1% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables?

a. Loss of $400000.

b. Loss of $50000.

c. $0.

d. Loss of $350000.

Reference no: EM132706654

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