Alphabet obtains financing from the Hoosier Bank by factoring (or discounting) its receivables without recourse. During June 2024, the company factored $1,000,000 of accounts receivable to Hoosier Bank. The factor, Hoosier Bank, remits 90% of the factored receivables and retains 10%. When the receivables are collected by Hoosier, the retained amount, less a 5% fee (5% of the total factored amount), will be remitted to Alphabet. Alphabet estimates the fair value of the amount retained by Hoosier is $40,000. Which of the following best describes Alphabet's sale of accounts receivable:

Alphabet has a $10,000 gain on the sale.

Alphabet has a $50,000 loss on the sale.

Alphabet has a $100,000 loss on the sale.

Alphabet has neither a loss nor a gain on the sale.