Question:Athens Corp. sold 80% pro rata interest in a $2,000,000 note receivable to Sparta Company Ltd. for $1,920,000. The note was originally issued at its face amount. Future benefits and costs of servicing the note are immaterial. If the provisions of SFAS 140 are followed, the amount of gain or loss that the former should recognize on this transfer of a partial interest _________ .
A ($80,000)
B $0
C $320,000
D $400,000
+ AnswerB
+ Explanation
+ Report
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