On February 1, 2025, Showalter Company factored receivables with a carrying amount of $500,000 to Gasser Company. Gasser Company assesses a finance charge of 3% of the receivables and retains 5% of the receivables for probable adjustment for returns, allowances and discounts. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Showalter Company for February. Assume that Showalter factors the receivables on a without recourse basis. The loss to be reported is: a) $0 b) $15,000 c) $25,000 d) $40,000 e) None of the above