Current Attempt in Progress

Oriole Inc. factors $$6300000$ of its accounts receivables with recourse for a finance charge of $2\%.$ The finance company retains an

amount equal to $10\%$ of the accounts receivable for possible adjustments. Oriole estimates the fair value of the recourse liability at

$$226000.$ What would be recorded as a gain $($loss$)$ on the transfer of receivables?

Gain of $$982000.$

Gain of $$126000.$

Loss of $$352000.$

Loss of $$226000.$