On October 1,2018, Bane Company entered into a 6-month, 5,200,000 purchase commitment for a supply of a special product on March 31, 2019. On December 31, 2018, the market value of this material had fallen to 5,000,000. On March 31, 2019, the market value of the purchase commitment is 4,900,000. What is the loss on purchase commitment that should bane Company recognized on March 31, 2019? Select the correct response: 200,000 300,000 O 100,000

On October 1,2018, Bane Company entered into a 6-month, 5,200,000 purchase commitment for a supply of a special product on March 31, 2019. On December 31, 2018, the market value of this material had fallen to 5,000,000. On March 31, 2019, the market value of the purchase commitment is 4,900,000. What is the loss on purchase commitment that should bane Company recognized on March 31, 2019? Select the correct response: 200,000 300,000 O 100,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 29P

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