Coronado Inc. factors $$7000000$ of its accounts receivables without recourse for a finance charge of $5\%.$ The finance company retains

an amount equal to $10\%$ of the accounts receivable for possible adjustments. What would be recorded as a gain $($loss$)$ on the transfer

of receivables?

Loss of $$250000$

Loss of $$1300000$

Loss of $$350000$

Gain of $$600000$