Sun Inc assigns $2,000,000 of its accounts receivables as collateral for a $1 million 8% loan with a bank.Sun Inc.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 $20,000.
B) Loss of $160,000.
C) Loss of $180,000.
D) $0.
Correct Answer:
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