B$.(3$ points$).$ Ward Gold has an inventory of gold. The gold is currently valued at lower of cost or net

realizable value at $$20$ million, $$2,000$ per ounce on $4/1/24.$ Ward wants to minimize the impact of fair value declines in

gold prices by purchasing a put option with a $1$ year expiration, which it designates as a fair value hedge.

The put option gives Ward the option to sell its inventory at a price of $$2,000$ per ounce.

a$.$ On June $30,2024,$ the price of gold decreases by $5\%$ to $1,900$ per ounce. What entries does Ward Gold make

to adjust its inventory and record the change in value of its put option.