P6.5 (LO 2, 4) (Analysis of Alternatives) Julia Baker died, leaving to her husband Brent an insur- ance policy contract that provides that the beneficiary (Brent) can choose any one of the following four options. a. $55,000 immediate cash. b. $4.000 every 3 months payable at the end of each quarter for 5 years. c. $18,000 immediate cash and $1,800 every 3 months for 10 years, payable at the beginning of each 3-month period. d. $4.000 every 3 months for 3 years and $1.500 each quarter for the following 25 quarters, all payments payable at the end of each quarter. Instructions If money is worth 212% per quarter, compounded quarterly, which option would you recommend that Brent exercise? E7.18 (LO 5) (Transfer of Receivables with Recourse) Beyonc Corporation factors $175,000 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. Instructions a. What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale? b. Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2020, for Beyonc to record the sale of receivables, assuming the recourse obligation has a fair value of $2,000