Calahan Corporation regularly factors its receivables when they are short of cash. This spring they not only

Question:

Calahan regularly factors its receivables when they are short of cash. This spring they not only factored $325,000 of receivables at 80 percent of their value but sold two company automobiles that they had purchased five months earlier for $45,000 for only $38,000. What are Calahan's losses on these sales and how do they affect its income?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...