Ruby Inc. purchases 2 dry whey futures contracts at $0.45 per pound on February 25, 2021. Each contract is on 44,000 pounds of dry whey. Suppose on December 31, 2021 the futures price is $0.48 per pound. On March 20, 2022 it is $0.52 per pound. The contracts are closed out on March 20, 2022. What gain is recognized (taxable) in the accounting year January 1 to December 31, 2022 if the company is classified as a hedger?

A.

$2,640

B.

$6,160

C.

$19,800

D.

$3,520