DT Corporation, a manufacturer of Mexican foods, contracted 2007 to purchase 1,000 pounds of a spice mixture at $5.00 per pound, delivery to be made in spring of 2008. By 12/31/07, the price per pound of the spice mixture had dropped to $4.60 per pound. In 2007, DT should recognize a loss of $5,000. a loss of $400. no gain or loss. a gain of $400