The account, Loss on Purchase Commitments, used when the year-end market price is less than the fixed purchase price for non-cancellable purchase obligations is reported as a(n)

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The account, Loss on Purchase Commitments, is reported as a component of income from continuing operations on the income statement. This reflects the loss recognized when the market price at year-end is lower than the fixed purchase price under a non-cancellable purchase obligation.

The Account, Loss on Purchase Commitments, Used When the Year-End