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S1: In note discounting treated as a secured borrowing, a contingent liability is recognized on the date of discounting. S2: In note discounting treated as

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S1: In note discounting treated as a secured borrowing, a contingent liability is recognized on the date of discounting. S2: In note discounting treated as a conditional sale, an accounting liability is recorded an amount equal to the face amount of the note receivable discounted. A) Both statements are correct. B) Both statements are incorrect. C)Only Si is correct. D) Only S2 is correct

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