10. During the current fiscal year, Jeremiah Corp. signed a long-term noncancellable purchase commitment with its primary supplier. Jeremiah agreed to purchase 10 million of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of 7 million. On January 1 of the next fiscal year, Jeremiah purchased the raw materials by exercising the commitment. Which of the following is correct regarding exercising the commitment on Jan 1? (A) Cost of the material was 3 million. (B) Cost of the material was 7 million. (C) Cost of the material was 10 million. (D) None of the above