Question: Dani Corporation signed a binding commitment on December 2 to purchase inventory at a cost of $300,000 on January 2. By December 31, the market

Dani signed a binding commitment on December 2 to purchase inventory at a cost of $300,000 on January 2. By December 31, the market price (replacement cost) of the inventory had declined to $280,000. Prepare Dani Corporation’s journal entries at year-end and at the date of purchase.

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