On February 1, 2013, Chocolate Corp

question 436

Multiple Choice

On February 1, 2013, Chocolate Corp.factored receivables with a carrying amount of $300,000 to Eclair Inc.Eclair assessed a finance charge of 3% of the receivables and retained 5% of the receivables.Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Chocolate Corp.for February.Assume that Chocolate factors the receivables on a without recourse basis.The loss to be reported is

• A)$ 0.
• B)$9,000.
• C)$15,000.
• D)$24,000.

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