RS Corporation, a Manufacturer of Ethnic Foods, Contracted in 2010

RS Corporation, a manufacturer of ethnic foods, contracted in 2010 to purchase 500 pounds of a spice mixture at $5.00 per pound, delivery to be made in spring of 2011.By 12\31\10, the price per pound of the spice mixture had risen to $5.60 per pound.In 2010, AJ should recognize

A) a loss of $2,500.
B) a loss of $300.
C) no gain or loss.
D) a gain of $300.