Concord Corporation factors $6700000 of its accounts receivables with recourse for a finance charge of 4%. The finance company retains an amount equal to 9% of the accounts receivable for possible adjustments. Concord estimates the fair value of the recourse liability at $218000. What would be recorded as a gain (loss) on the transfer of receivables?

Loss of $486000.

Gain of $1089000.

Loss of $218000.

Gain of $268000.