Use the following information for problems 49-50. On December 4, 20X8, DoCo enters into a contractual agreement to take delivery on January 25, 20X9 of 10,000 pounds of nuts at a cost of $2.20 per pound. On December 31, 20x8, DoCo finds that the market price of the nuts has declined to $1.90 per pound, and management decides that the decline is permanent. DoCo should show these developments on its 20X8 financial statements as ' . ' 49. a. a $22,000 liability b. a $19,000 liability $3,000 liability d. mo liability When DoCo takes delivery on January 25, 20X9, the market price of nuts is $1.75 per pound. As a result, DoCo should 50. a. debit Inventory $17,500 debit Inventory $22,000 c. debit Loss $4,500 debit Retained Earnings $3,000