Logitech corporation transferred $115,000 of accounts receivable to a local bank. the transfer was made without recourse. the local bank remits 85% of the factored amount to logitech and retains the remaining 15%. when the bank collects the receivables, it will remit to logitech the retained amount less a fee equal to 2% of the total amount factored. logitech estimates a fair value of its 15% interest in the receivables of $12,500 (not including the 2% fee). what is the effect of this transaction on the company’s assets, liabilities, and income before income taxes?

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers. b) may not accept the offer because it is considered lavish entertainment. c) must obtain written consent from batts brothers before accepting the offer.