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On July 10,2024, a company signed a purchase commitment to purchase inventory for $350,000 on...

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Accounting

On July 10,2024, a company signed a purchase commitment to purchase inventory for $350,000 on or before F$
The company's fiscal year-end is December 31. The contract was exercised on February 1,2025, and the inventory was
purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $361,000.
The market price of the inventory on December 31,2024, was $322,000. The company uses a perpetual inventory system.
How much loss on purchase commitment will the company recognize in 2024?
Multiple Choice
$11,000.
$28,000
$39,000.
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