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On February 1, 2025, Marigold Company factored receivables with a carrying amount of $630000 to Ivanhoe Company. Ivanhoe Company assesses a finance charge of 2%
On February 1, 2025, Marigold Company factored receivables with a carrying amount of $630000 to Ivanhoe Company. Ivanhoe Company assesses a finance charge of 2% of the receivables and retains 4% of the receivables. Assume that Marigold factors the receivables on a with recourse basis and that the recourse obligation has a fair value of $3150. The loss to be recorded on this transaction is $12600. $25200. $40950. $15750
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