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Sun Inc assigns $2,000,000 of its accounts receivables as collateral for a $1 million 8% loan with a bank. Sun Inc. also pays a finance

Sun Inc assigns $2,000,000 of its accounts receivables as collateral for a $1 million 8%

loan with a bank. Sun Inc. also pays a finance fee of 1% on the transaction upfront.

What would be recorded as a gain (loss) on the transfer of receivables?

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