On December $31,$ GasMart has an outstanding purchase commitment for the purchase of $1$ million gallons of gasoline at a price of $$4\mathrm{.}60$ per gallon for delivery during the coming summer. The company prices its inventory at the lower of cost or market. If the market price for gasoline at the end of the year is $$4\mathrm{.}25,$ how would this situation be reflected in the annual financial statements?

Group of answer choices

Only disclose the existence of the purchase commitment.

No impact.

Record unrealized gains of $$350,000$ and disclose the existence of the purchase commitment.

Record unrealized losses of $$350,000$ and disclose the existence of the purchase commitment.