RS Corporation, a manufacturer of ethnic foods, contracted in 2010 to purchase 500 pounds of a spice

mixture at $5.00 per pound, delivery to be made in spring of 2011. By 12/31/10, the price per pound of the spice mixture had risen to $5.60 per pound. In 2010, AJ should recognize a. a loss of $2,500. b. a loss of $300. c. no gain or loss.