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Bruno received from a customer a one-year, P375,000 note bearing note bearing annual interest of 8%. After holding the note for six months, Bruno discounted

Bruno received from a customer a one-year, P375,000 note bearing note bearing annual interest of 8%. After holding the note for six months, Bruno discounted the note at Super Bank at an effective interest rate of 10%. If the discounting is treated as a conditional sale, what amount of loss on discounting should Bruno recognize?*

A) 20,250

B) Zero

C) 5,250

D) 9,750

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