Darren Company, a manufacturer of chocolate candies, contracted in July 2020 to purchase 400 pounds of cocoa beans at $4.00 per pound, delivery to be made in spring of 2021. By 12/31/2020, the price per pound of cocoa beans had risen to $4.50 per pound. In 2020, Darren should recognize

a.

a loss of $1,600.

b.

no gain or loss.

c.

a loss of $200.

d.

a gain of $200.