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On February 1, 2020, Gamma sold receivables with a carrying amount of $700,000 to a factor called Alpha Capital. Alpha Capital assesses a finance

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On February 1, 2020, Gamma sold receivables with a carrying amount of $700,000 to a factor called Alpha Capital. Alpha Capital assesses a finance charge of 3% of the receivables and retains 5% of the receivables. Assume that Gamma sells the receivables on a without-recourse basis. Relative to this transaction, the loss to be reported in the income statement of Gamma for February is? $21,000. $56,000. $0. $35,000.

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