On June 1, Year 1, Moore Inc. entered into a noncancelable contract to purchase 140,000 units of raw materials inventory at $84 per unit, which is the current market price of the inventory at that date. The contract period extends for one year from the date of its inception. Moores accounting period ends December 31. On December 31, Year 1, raw materials were being sold for $81 per unit. What loss, if any, should Moore recognize on December 31, Year 1?

Select one:

a. $420,000

b. $0

c. $210,000

d. $245,000