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47. On December 1,2020 , Mackenzie Inc. entered into a noncancelable contract to purchase 100,000 units of raw materials inventory at $60 per unit, which
47. On December 1,2020 , Mackenzie Inc. entered into a noncancelable contract to purchase 100,000 units of raw materials inventory at $60 per unit, which is the current market price of the inventory at that date. On December 31,2020 , the company's year-end, the company recognized a loss of $100,000 because the net realizable value of the inventory under contract dropped below the contract price. In 2021, if the net realizable value increases beyond the previously recorded loss, Mackenzie Inc.: A) Would reverse the loss, recognizing the full gain as income in 2021 B) Would reverse the loss and recognize income, but only up to the point of the prior loss C) Would reverse the loss, recognizing the full gain as income if sustained for 6 months D) Would not reverse the loss
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