Rock Inc. entered into a non-cancellable commitment to purchase raw materials in the amount of $31,000 on December 31st, 2023. Replacement cost was estimated at $25,000 on November 30th, 2023 and this amount was not expected to change. Which of the following statements is correct?

a) This is not an onerous contract. A loss must be accrued in the amount of $6,000

b) This is not an onerous contract.

c) This is an onerous contract. A loss must be accrued in the amount of $6,000.

d) This is an onerous contract. However, the $6,000 loss should only be disclosed in the financial statements and not accrued.