Excuse me, to reply your answer to dangkhoa.nhhtd’s question, I’m so confused with 2 problems:
1. Why the answer cannot be D. I mean, in substance, this repurchase transaction is actually a loan with mortgage (in this case is the inventories) so I think $4-3,050 is the interest expense.
2. If the answer is C, how do we deal with the $4-3,050 when payment are made?