Stick Paxton Co. signed contracts for the purchase of raw materials to be executed the following year at a firm price of $5 million. The market price of the materials dropped to $3 million on December 31. What amount should Paxton record as an estimated liability on purchase commitments as of December 31? A. $5,000,000 B. $3,000,000 $2,000,000 O C. O D. $0