Question: Assume for this problem that ABC Company agreed to service the loans without explicitly stating the compensation. The fair value of the service is $50.

Assume for this problem that ABC Company agreed to service the loans without explicitly stating the compensation.

The fair value of the service is $50. What are the net proceeds received and the gain (loss) on the sale?

Net proceeds received Gain (loss)

a. $2,200 $ 200

b. $2,250 $ 250

c. $2,150 $ 150

d. $2,200 $(250)

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