Question
Crane Companyassigns $5000000of its accounts receivables as collateral for a $1.80million7% loan with a bank.Crane Companyalso pays a finance fee of1% on the transaction upfront.
Crane Companyassigns $5000000of its accounts receivables as collateral for a $1.80million7% loan with a bank.Crane Companyalso pays a finance fee of1% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables?
Loss of $400000.
Loss of $50000.
$0.
Loss of $350000.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
