Logitech Corporation transferred $140,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 85% of the factored amount to Logitech and retains the remaining 15%. When the bank collects the receivables, it will remit to Logitech the retained amount less a fee equal to 4% of the total amount factored. Logitech estimates a fair value of its 15% interest in the receivables of $18,500 (not including the 4% fee).

What is the effect of this transaction on the companys assets, liabilities, and income before income taxes?