A contract for a purchase commitment specifies a price of $10 per unit for a commodity. The price is fixed by contract. As of the balance sheet date, the contract had not been executed, and the market price of the commodity had decreased to $7. The firm made the appropriate adjusting entry at year-end. At time of payment in the next period, the market price of the commodity had increased to $11. The firm should report a gain of $3 per unit in the balance sheet.
True of False, show work