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On February 1, 2020, Norton Company transferred the receivables on a with recourse basis with...

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On February 1, 2020, Norton Company transferred the receivables on a with recourse basis with a carrying amount of $100,000 to the Koch Company. Koch Company remits 93% of the factored amount and retains 7%. When Koch collects the receivable, it will remit to Norton the retained amount (which Norton estimates has a fair value of $5,000) less a 3% fee (3% of the total factored amount). Assume the fair market value of the recourse obligation is $1,000. Determine the loss on sale. Multiple Choice $3,000 0 $4,000 $5,000 0 $6,000

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