Sun Inc. factors $6,000,000 of its accounts receivables without recourse for a finance charge of 5%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Sun estimates the fair value of the recourse liability at $230,000. What would be recorded as a gain (loss) on the transfer of receivables?

a. Loss of $230,000.

b. Loss of $1,130,000.

c. Gain of $530,000.

d. Loss of $300,000.