Question - Lirin 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 amounts receivable for possible adjustments. Lirin 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. Gain of $530,000.
B. Loss of $1,130,000.
C. Loss of $230,000.
D. Loss of $300,000.