To generate some positive cash flow, Company Inc. factors $200,000 of accounts receivable to a bank. The bank retains 17% of the $200,000 as follows:

5% of the factored amount is retained as a fee for the bank's services

12% of the factored amount is retained as a holdback for sales returns and discounts. Company Inc. believes that the fair value of the this holdback is $21,500.

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1. On the date of the original arrangement, how much cash will Company Inc. receive?

2. What will Company Inc. report as loss on sale of receivables?

3. Assume that in addition to the facts above, Company Inc. accepts a $10,000 recourse obligation. What will Company Inc. report as loss on sale of receivables?