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2. During the current fiscal year, Jeremiah Corp. signed a long-term noncancellable purchase commitment with its primary supplier. Jeremiah agreed to purchase $2.0 million of

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2. During the current fiscal year, Jeremiah Corp. signed a long-term noncancellable purchase commitment with its primary supplier. Jeremiah agreed to purchase $2.0 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 $1.6 million. What is the journal entry at the end of the current fiscal year? a. Debit Unrealized Holding Gain or Loss for $400,000 and credit Estimated Liability on Purchase Commitment for $400,000. b. Debit Estimated liability on Purchase Commitments for $400,000 and credit Unrealized Holding Gain or Loss for $400,000. c. Debit Unrealized Holding Gain or Loss for $1,600,000 and credit Estimated Liability on Purchase Commitments for $1,600,000 d. No journal entry is required

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