hard · Asset-Backed Securities
A bank transfers $1,000 million of credit card receivables to a trust. The bank receives $920 million in cash and retains a residual interest valued at $120 million.
If the historical carrying value was $1,000 million, what is the 'allocated carrying value' of the sold portion under ASC 860?
- 800.0 million
- 1,040.0 million
- 920.0 million
- 884.6 million
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