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Question - On September 1, Y5, Aylmer Inc signs a purchase commitment to purchase inventory items for $900,000. Aylmer will take delivery of those items in Y6. Aylmer has a December 31 fiscal year and on December 31, Y5, the fair value of the inventory items declined to $432,800. The fair value remained at this low amount until Aylmer took delivery.
What amount should be recorded as Accounts Payable when Aylmer takes delivery of the inventory items?
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