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

1. Loss of $230,000
2. Gain of $530,000
3. Loss of $1,130,000
4. Loss of $300,000

How is the answer $300,000?