On February 1, 2013, Chocolate Corp.factored receivables with a carrying amount of $300,000 to Eclair Inc.Eclair assessed a finance charge of 3% of the receivables and retained 5% of the receivables.Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Chocolate Corp.for February.Assume that Chocolate factors the receivables on a with recourse basis.The recourse obligation has a fair value of $1,000.The loss to be reported is
A)$16,000.
B)$15,000.
C)$10,000.
D)$ 9,000.

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The Answer of On February 1, 2013, Chocolate Corp.factored receivables with a carrying amount of $300,000 to Eclair Inc.Eclair assessed a finance charge of 3% of the receivables and retained 5% of the receivables.Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Chocolate Corp.for February.Assume that Chocolate factors the receivables on a with recourse basis.The recourse obligation has a fair value of $1,000.The loss to be reported is
A)$16,000.
B)$15,000.
C)$10,000.
D)$ 9,000.