On December 31, 2021, the market value of this material had6-month, P5,200,000 purchase commitment for a supply of aOn October 1, 2021, Gorgeous Company entered into aProblem 12-16 (IAA)apecial product.fallen to P5,000,000On March 31, 2022, the market value of the purchasecommitment is P4,900,000.What amount should be recognized as loss on purchasecommitment ìn 2022?a. 200,000b. 100,000c. 300,000d.0.

Purchase commitment refers to the firm's commitment to acquire the goods and services from the…

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What amount should be recognized as loss on purchase pommitment in 2022? 200,000 p. 100,000 E. 300,000 0.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 38P

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Question

On December 31, 2021, the market value of this material had
6-month, P5,200,000 purchase commitment for a supply of a
On October 1, 2021, Gorgeous Company entered into a
Problem 12-16 (IAA)
apecial product.
fallen to P5,000,000
On March 31, 2022, the market value of the purchase
commitment is P4,900,000.
What amount should be recognized as loss on purchase
commitment ìn 2022?
a. 200,000
b. 100,000
c. 300,000
d.
0.

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