Kieso chap 18

8/18/2019 Kieso chap 18

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Volume 2Volume 2

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C H A P T E RC H A P T E R 1818

REVENUEREVENUE

Intermediate Accounting

IFRS Edition

Kieso, Weygandt, and Warfield

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1. Apply the revenue recognition principle.

2. Describe accounting issues for revenue recognition at point of

sale.

3. Apply the percentage-of-completion method for long-term

contracts.

4. Apply the cost-recovery method for long-term contracts.

5. Identify the proper accounting for losses on long-term contracts.

. Describe the accounting issues for service contracts.

!. Identify the proper accounting for multiple-deliverable

arrangements.

Learning Objeci!e"Learning Objeci!e"

Learning Objeci!e"Learning Objeci!e"

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Curren

En!ironmen

"uidelines forrevenue

recognition

Departures from

sale basis

Re!enue

Recogniion $A

Poin o% &ale'

Re!enue

Recogniion $Long-

Term Conrac"'

Re!enue

Recogniion

$O(er'

#easurement

$ecognition

%ummary

%ervice contracts

#ultiple-

deliverable

arrangements

&ther

%ummary of

methods

'ercentage-of-completion method

(ost-recovery

method

)ong-term contract

losses

Disclosures

Re!enue

Re!enue

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Re"aemen" for im*ro*er re!enue recogniion are

relatively common and can lead to significant share price

ad*ustments.

Re!enue recogniion is a top fraud ris+ and regardlessof the accounting rules follo,ed I$% or /.%. "AA'0

the ris+ or errors and inaccuracies in revenue reporting is

significant.

T(e Curren En!ironmenT(e Curren En!ironmen


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Re!enue recogniion *rinci*le, $evenue is recognied

ui.eline" %or Re!enue Recogniion



LO 1 Apply the revenue recognition principle.LO 1 Apply the revenue recognition principle.

10 ,hen it is probable that the economic bene%i" /ill

%lo/ o (e com*an0 and

20 ,hen the bene%i" can be mea"ure. reliabl0.

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&ale o% *ro.uc

%rom in!enor0

T0*e o%

Tran"acionRen.ering a

"er!ice

Permiing u"e

o% an a""e

&ale o% a""e

o(er (an

in!enor0

ae o% "ale

$.ae o%

.eli!er0'

&er!ice"

*er%orme. an.

billable

A" ime *a""e"

or a""e" are

u"e.

ae o% "ale or

ra.e-in

ain or lo"" on

.i"*o"iion

Re!enue %rom

inere" ren"

an. ro0alie"

Re!enue %rom

%ee" or

"er!ice"

Re!enue %rom

"ale"

e"cri*ion

o% Re!enue

Timing o%

Re!enue

Recogniion

T(e Curren En!ironmenT(e Curren En!ironmenT(e Curren En!ironmenT(e Curren En!ironmen


4llu"raion 18-1

Re!enue Recogniion Cla""i%ie. b0 Naure o% Tran"acion

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18-8

Earlier recognition is appropriate if there is a high degree of

certainty about the amount of revenue earned.

ela0e. recognition is appropriate if the

degree of uncertainty concerning the amount of revenue

or costs is sufficiently high or

sale does not represent substantial completion of theearnings process.

e*arure" %rom (e &ale 5a"i"

T(e Curren En!ironmenT(e Curren En!ironmenT(e Curren En!ironmenT(e Curren En!ironmen


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$evenue should be mea"ure. at the %air !alue o%

con"i.eraion recei!e. or recei!able.

Tra.e .i"coun" or !olume rebae" should reduceconsideration received or receivable and the related

revenue.

4% *a0men i" .ela0e. seller should impute an interest

rate for the difference bet,een the cash or casheuivalent price and the deferred amount.

7ea"uremen o% &ale Re!enue

Re!enue Recogniion a Poin o% &aleRe!enue Recogniion a Poin o% &aleRe!enue Recogniion a Poin o% &aleRe!enue Recogniion a Poin o% &ale

LO 2 Describe accounting issues for revenue recognition at point of sale.LO 2 Describe accounting issues for revenue recognition at point of sale.

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4llu"raion 18-2

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%ansung ma+es the follo,ing entry on #arch 31 211.

Accounts receivable !

%ales !

4llu"raion 18-2

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Assuming %ansung6s customers mee (e .i"coun (re"(ol.

%ansung ma+es the follo,ing entry.

(ash !


4llu"raion 18-2

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If %ansung6s customers %ail o mee (e .i"coun threshold

%ansung ma+es the follo,ing entry upon payment.

(ash !


%ales discounts forfeited 21

4llu"raion 18-2

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7hen a sales transaction involves a %inancing arrangemen the

%air !alue i" .eermine. b0 .i"couning the payment using an

im*ue. inere" rae.

4m*ue. inere" rae is the more clearly determinable of either

1. the prevailing rate for a similar instrument of an issuer ,ith a

similar credit rating or

2. a rate of interest that discounts the nominal amount of the

instrument to the current sales price of the goods or services.

7ea"uremen o% &ale Re!enue



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4llu"raion 18-3

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8he *ournal entry to record %9:6s sale to "rant (ompany on;uly 1 211 is as follo,s ignoring cost of goods sold entry0.

<otes receivable

%ales

4llu"raion 18-3

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%9: ma+es the follo,ing entry to record interest revenue.

<otes receivable 54

Interest revenue 12= > ? > @0 54

4llu"raion 18-3

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Re!enue %rom (e "ale o% goo." is recogni9e. /(en all the follo,ing

conditions are met

1. (ompany has transferred to the buyer the significant ris+s and

re,ards of o,nership of the goodsB

2. (ompany retains neither continuing managerial involvement to the

degree usually associated ,ith o,nership nor effective control over

the goods soldB

3. 8he amount of revenue can be measured reliablyB

4. It is probable that the economic benefits ,ill flo, to the companyB and

5. 8he costs incurred or to be incurred can be estimated reliably.

Recogniion o% &ale Re!enue


LO 2 LO 2

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5ill an. Hol. &ale"


5u0er i" no 0e rea.0 o a:e .eli!er0 but does ta+e title and

accept billing.


4llu"raion 18-#

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LO 2 LO 2

&oluion, Cutler should record the revenue at the time titlepasses provided

1. it is probable that delivery ,ill be madeB

2. the item is on hand identified and ready for delivery at

the time the sale is recogniedB

3. Caristo ac+no,ledges the deferred delivery arrangementB

and

4. the usual payment terms apply.

4 a**ear" (a (e"e con.iion" /ere *robabl0 me and

therefore revenue recognition should be permitted at the time

the agreement is signed.

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Cutler ma+es the follo,ing entry to record the bill and hold sale.

Accounts receivable 45

%ales 45

4llu"raion 18-#

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&ale" &ubjec o 4n"allaion or 4n"*ecion



4llu"raion 18-)

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La0a/a0 &ale"



4llu"raion 18-+

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&ale" /i( Rig( o% Reurn



8,o possible revenue recognition methods are available ,hen

the right of return e>poses the seller to continued ris+s of

o,nership

1. not recording a sale until all return privileges have e>pired

or

2. recording the sale but reducing sales by an estimate of

future returns.

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4llu"raion 18-

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LO 2 LO 2

'esido sold 3 of laser euipment on August 1 211 and

retains only an insignificant ris+ of o,nership. &n &ctober 15

211 1 in euipment ,as returned.

Augu" 1 211


%ales 3

Ocober 1) 211

%ales returns and allo,ances 1


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At December 31 211 based on prior e>perience 'esido

estimates that returns on the remaining balance ,ill be 4 percent.

'esido ma+es the follo,ing entry to record the e>pected returns.

ecember 31 211

%ales returns and allo,ances 11

Allo,ance for sales returns and allo,ances 11

E3 - 10 > 4= F 11G


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4llu"raion 18-8

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#organ records the sale and related cost of goods sold as

follo,s.(ash 135

%ales 135

(ost of "oods %old 115

Inventory 115

4llu"raion 18-8

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Princi*al-Agen Relaion"(i*"



Amounts collected on behalf of the principal are not

revenue of the agent.

$evenue for the agent is the amount of the commission itreceives.

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Con"ignmen"



#anufacturers or ,holesalers0 deliver goods but reain

ile o (e goo." until they are sold.

Con"ignor manufacturer or ,holesaler0 shipsmerchandise to the con"ignee dealer0 ,ho is to act as

an agent for the consignor in selling the merchandise.

Con"ignor ma+es a profit on the sale.

Con"ignee ma+es a commission on the sale.

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Tra.e Loa.ing an. C(annel &u%%ing



Tra.e loa.ing - a cray uneconomic insidious practice through

,hich manufacturersHtrying to sho, sales profits and mar+et

share they don6t actually haveHinduce their ,holesale

customers +no,n as the trade to buy more product than they

can promptly resell.

C(annel "u%%ing. 7hen a soft,are ma+er needed to ma+e its

financial results loo+ good it offered deep discounts to its

distributors to overbuy and then recorded revenue ,hen the

soft,are left the loading doc+.

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T/o me(o." of accounting for long-term constructioncontracts

'ercentage-of-completion method.

(ost-recovery ero-profit0 method.

Long-Term Conrac" $Con"rucion'Long-Term Conrac" $Con"rucion'Long-Term Conrac" $Con"rucion'Long-Term Conrac" $Con"rucion'

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Raionale for using *ercenage-o%-com*leion accountingis that under most of these contracts the

Cuyer and seller have enforceable rights.

Cuyer has the legal right to reuire specific performance on

the contract.

%eller has the right to reuire progress payments that

provide evidence of the buyer6s o,nership interest.

As a result a continuous sale occurs as the ,or+progresses and companies should recognie revenue

according to that progression.


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Com*anie" mu" u"e (e *ercenage-o%-com*leion me(o./(en all o% (e %ollo/ing con.iion" e;i"<

1. 8otal contract revenue can be measured reliablyB

2. It is probable that the economic benefits associated ,ith the

contract ,ill flo, to the companyB

3. Coth the contract costs to complete the contract and the stage

of contract completion at the end of the reporting period can

be measured reliablyB and

4. 8he contract costs attributable to the contract can be clearly

identified and measured reliably so the actual contract costs

incurred can be compared ,ith prior estimates.


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Com*anie" "(oul. u"e (e co"-reco!er0 me(o. /(en oneo% (e %ollo/ing con.iion" a**lie",

1. 7hen a company cannot meet the conditions for using the

percentage-of-completion method or

2. 7hen there are inherent haards in the contract beyond the

normal recurring business ris+s.


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Calculaion %or Re!enue o 5e Recogni9e.

LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

4llu"raion 18-11

4llu"raion 18-12

4llu"raion 18-13

Percenage-o%-Com*leion 7e(o.


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18-38 LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

4llu"raion, :( (onstruction (ompany has a contract toconstruct a @45 bridge at an estimated cost of

@4. 8he contract is to start in ;uly 21 and the

bridge is to be completed in &ctober 212. 8he follo,ing data

pertain to the construction period.


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18-36 LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

4llu"raion, (ompute percentage complete.4llu"raion 18-+


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18-# LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

4llu"raion, :( ,ould ma+e the follo,ing entries to record10 the costs of construction 20 progress billings and 30

collections.

4llu"raion 18-


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'ercentage-of-(ompletion $evenue and "ross 'rofit by ear 4llu"raion 18-1+


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18-#2 LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

4llu"raion, :(6s entries to recognie revenue and grossprofit each year and to record completion and final approval

of the contract.

4llu"raion 18-1


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18-#3 LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

4llu"raion, (ontent of (onstruction in 'rocess AccountH'ercentage-of-(ompletion #ethod

4llu"raion 18-18


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18-## LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

=inancial &aemen Pre"enaion>Percenage-o%-Com*leion

4llu"raion 18-16

(omputation of /nbilled (ontract 'rice at 12J31J1


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=inancial &aemen>Percenage-o%-Com*leion


4llu"raion 18-2

LO 3LO 3

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4llu"raion, or the bridge pro*ect illustrated on the preceding

pages Kardhat (onstruction ,ould report the follo,ing revenues and

costs.

Co"-Reco!er0 $?ero-Pro%i' 7e(o.Co"-Reco!er0 $?ero-Pro%i' 7e(o.Co"-Reco!er0 $?ero-Pro%i' 7e(o.Co"-Reco!er0 $?ero-Pro%i' 7e(o.

LO 4 Apply the cost-recovery method for long-term contracts.LO 4 Apply the cost-recovery method for long-term contracts.

4llu"raion 18-21

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4llu"raion, Kardhat6s entries to recognie revenue and gross profit

each year and to record completion and final approval of the contract.



4llu"raion 18-22

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4llu"raion, (omparison of gross profit recognied under different

methods.



4llu"raion 18-23

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=inancial &aemen>Co"-Reco!er0 7e(o.


4llu"raion 18-2#


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A' Pre*are (e journal enrie" %or 21 211 an. 212<A' Pre*are (e journal enrie" %or 21 211 an. 212<

LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

4llu"raion,


Ca"*er Con"rucion Co<

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18-)1 LO 3 Apply the percentage-of-completion method for long-term contracts.LO 3 Apply the percentage-of-completion method for long-term contracts.

4llu"raion,


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4llu"raion,

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4llu"raion,

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18-)#

(ompanies recognie revenue only to the e>tent of costs

incurred that are e>pected to be recoverable.

&nly after all costs are incurred is gross profit recognied.


Co"-Reco!er0 7e(o.


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Co"-Reco!er0 7e(o.Co"-Reco!er0 7e(o.Co"-Reco!er0 7e(o.Co"-Reco!er0 7e(o.

4llu"raion,


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4llu"raion,

Co"-Reco!er0 7e(o.Co"-Reco!er0 7e(o.Co"-Reco!er0 7e(o.Co"-Reco!er0 7e(o.


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18-) LO !dentify the proper accounting for losses on long-term contracts.LO !dentify the proper accounting for losses on long-term contracts.

)oss in the (urrent 'eriod on a 'rofitable (ontract

L 'ercentage-of-completion method only the estimated

cost increase reuires a current-period ad*ustment ofgross profit recognied in prior periods.

)oss on an /nprofitable (ontract

L /nder both percentage-of-completion and completed-contract methods the company must recognie in the

current period the entire e>pected contract loss.

Long-Term Conrac Lo""e"


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4llu"raion, )oss in (urrent 'eriod

Long-Term Conrac Lo""e"Long-Term Conrac Lo""e"Long-Term Conrac Lo""e"Long-Term Conrac Lo""e"

LO !dentify the proper accounting for losses on long-term contracts.LO !dentify the proper accounting for losses on long-term contracts.

b0 'repare the *ournal entries for 21 211 and 212 assuming the estimatedcost to complete at the end of 211 ,as @21)#3+ instead of €1!1.

b0 'repare the *ournal entries for 21 211 and 212 assuming the estimatedcost to complete at the end of 211 ,as @21)#3+ instead of €1!1.


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4llu"raion, )oss on /nprofitable (ontract



c0 'repare the *ournal entries for 21 211 and 212 assuming the estimatedcost to complete at the end of 211 ,as @ 2#+38 instead of @ 1!1.

c0 'repare the *ournal entries for 21 211 and 212 assuming the estimatedcost to complete at the end of 211 ,as @ 2#+38 instead of @ 1!1.


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or the Co"-Reco!er0 method companies ,ould recognie the

follo,ing loss


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(onstruction contractors should disclosure

$evenue recognied during the period and the methods used to

determine the contract revenue and stage of completion.

or contracts in progress

L aggregate amount of costs incurred and recognied net

income amount of advances received and amount of

retentions.

Any contingent assets or liabilities related to these contracts.

i"clo"ure" in =inancial &aemen"



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ollo, the same criteria as long-term contracts.

8o recognie revenue

It must be reliably measurableB

9conomic benefits are probableB

%tage of completion must be reliably measurableB and

(osts must be reliably measurable.

&er!ice Conrac"

O(er Re!enue Recogniion 4""ue"O(er Re!enue Recogniion 4""ue"O(er Re!enue Recogniion 4""ue"O(er Re!enue Recogniion 4""ue"

LO " Describe the accounting issues for service contracts.LO " Describe the accounting issues for service contracts.

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&ingle Ac, $evenue recognied at the time of the act.

7ore T(an One Ac, $evenue recognied as various acts

occur.8hree circumstances

1. %pecified number of identical or similar acts.

2. %pecified number of defined but not identical acts.

3. /nspecified number of identical acts or similar acts ,ith a

fi>ed period for performance.

&er!ice Conrac"



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LO " LO "

Assuming $OD services are provided according to the contract in

211 ;ac+son ma+es the follo,ing entries in 211 to recognied

revenue on the Andes contract.

anuar0 1 211

(ash 1

/nearned $OD service revenue 1

ecember 31 211

(ash 4

/nearned $OD %ervice $evenue 2

$OD %ervice $evenue

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18-



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18-1 LO " Describe the accounting issues for service contracts.LO " Describe the accounting issues for service contracts.


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18-2 LO " Describe the accounting issues for service contracts.LO " Describe the accounting issues for service contracts.


O ( R R i i 4

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18-3


%enior)ife ma+es the follo,ing entries related to the contract.

anuar0 1 211

(ash 3

/nearned service revenue 3

ecember 31 211

/nearned service revenue

%ervice $evenue

ecember 31 212

/nearned service revenue 15

%ervice $evenue 15

O( R R ii 4

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7A" provide multiple products or services to customers as part

of a single arrangement.

7ajor accouning i""ue"

ho, to allocate the revenue to the various products and

services and

ho, to allocate the revenue to the proper period.

7uli*le-eli!erable Arrangemen" #DAs0


LO # !dentify the proper accounting for multiple-deliverable arrangements.LO # !dentify the proper accounting for multiple-deliverable arrangements.

O ( R R i i 4O( R R ii 4

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18-)

All units in a #DA are considered separate units of accounting

provided that

1. A delivered item has value to the customer on a standalone

basisB and

2. 8he arrangement includes a general right of return relative to

the delivered itemB and

3. Delivery or performance of the undelivered item isconsidered probable and substantially in the control of the

seller.




O( R R ii 4O( R R ii 4

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4llu"raion 18-33

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18- LO # !dentify the proper accounting for multiple-deliverable arrangements.LO # !dentify the proper accounting for multiple-deliverable arrangements.

4llu"raion 18-3#

O( R R ii 4O( R R ii 4

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Interest $oyalties and Dividends

Accretion

(ompletion-of-'roduction Casis

O(er Re!enue &iuaion"



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8he IA%C defines revenue to include both revenues and gains. /.%.

"AA' provides separate definitions for revenues and gains.

$evenue recognition fraud is a ma*or issue in revenue recognition. 8he

same situation occurs in the /nited %tates as evidenced by revenue

recognition brea+do,ns at telecom company "lobal (rossing /%A0

technology company )ucent 8echnologies /%A0 and utility company

9nron /%A0.

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18-8

A specific standard e>ists for revenue recognition under I$% IA% 1N0.

In general the standard is based on the probability that the economicbenefits associated ,ith the transaction ,ill flo, to the company selling

the goods rendering the service or receiving investment income. In

addition the revenues and costs must be capable of being measured

reliably. /.%. "AA' uses concepts such as realied or realiable and

earned as a basis for revenue recognition.

/.%. "AA' permits the use of the completed-contract method of

accounting for long-term construction contracts IA% 110. (ompanies

generally use the percentage-of-completion method. If revenues and

costs are difficult to estimate then companies recognie revenue only to

the e>tent of the cost incurredHa ero-profit approach under I$%.

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/.%. "AA' does not allo, the percentage-of-completion method for

service contracts. /nder I$% costs can be deferred if the company isusing percentage-of-completion. /nder "AA' costs are generally

e>pensed as incurred.

/.%. "AA' provides detailed guidance in multiple-deliverable

arrangements. I$% guidance is more general.

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=ranc(i"e"T/o "ource" o% re!enue,

1. %ale of initial franchises and related assets or

services and

2. (ontinuing fees based on the operations of

franchises.

LO $ %&plain revenue recognition for franchises sales.LO $ %&plain revenue recognition for franchises sales.

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18-83 LO $ %&plain revenue recognition for franchises sales.LO $ %&plain revenue recognition for franchises sales.

8he %ranc(i"or normally provides the %ranc(i"ee ,ith

1. Assistance in site selection.

2. 9valuation of potential income.

3. %upervision of construction activity.

4. Assistance in the acuisition of signs fi>tures and euipment.

5. Coo++eeping and advisory services.

. 9mployee and management training.

!. Puality control.

N. Advertising and promotion.

=ranc(i"e"

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18-8#

ranchisors record initial franchise fees as

revenue only ,hen and as they ma+e B"ub"anial

*er%ormance of the services they are obligated to perform and

,hen collection of the fee is reasonably assured.

&ub"anial *er%ormance occurs ,hen the franchisor has no

remaining obligation to refund any cash received or e>cuse any

nonpayment of a note and has performed all the initial services

reuired under the contract.

4niial =ranc(i"e =ee"


8/18/2019 Kieso chap 18


18-8)

4llu"raion, 8um6s 'ia Inc. charges an initial franchise fee of

5 for the right to operate as a franchisee of 8um6s 'ia. &f this

amount 1 is payable ,hen the franchisee signs the agreement

and the balance is payable in five annual payments of N each.8he credit rating of the franchisee indicates that money can be

borro,ed at N percent. 8he present value of an ordinary annuity of five

annual receipts of N each discounted at N percent is 3142. 8he

discount of N5N represents the interest revenue to be accrued bythe franchisor over the payment period.

E;am*le o% Enrie" %or 4niial =ranc(i"e =ee


8/18/2019 Kieso chap 18


18-8+

4llu"raion, 1< If there is reasonable e>pectation that 8um6s 'ia Inc.

may refund the do,n payment and if substantial future services remain

to be performed by 8um6s 'ia Inc. the entry should be


(ash 1

<otes $eceivable 3142

/nearned ranchise ees 4142


8/18/2019 Kieso chap 18


18-8

4llu"raion, 2< If the probability of refunding the initial franchise fee is

e>tremely lo, the amount of future services to be provided to the

franchisee is minimal collectibility of the note is reasonably assured

and substantial performance has occurred the entry should be


(ash 1


$evenue from ranchise ees 4142


8/18/2019 Kieso chap 18


18-88

4llu"raion, 3< If the initial do,n payment is not refundable

represents a fair measure of the services already provided ,ith a

significant amount of services still to be performed by 8um6s 'ia in

future periods and collectibility of the note is reasonably assured theentry should be


(ash 1


$evenue from ranchise ees 1.



8/18/2019 Kieso chap 18


18-86

4llu"raion, #< If the initial do,n payment is not refundable and no

future services are reuired by the franchisor but collection of the note

is so uncertain that recognition of the note as an asset is un,arranted

the entry should be


(ash 1

$evenue from ranchise ees 1


8/18/2019 Kieso chap 18


18-6

4llu"raion, )< /nder the same conditions as those listed in case 4

above e>cept that the do,n payment is refundable or substantial

services are yet to be performed the entry should be


(ash 1


4n ca"e" # and 5 H ,here collection of the note is e>tremely uncertainHfranchisors may recognie cash collections using the cost-recovery method.


8/18/2019 Kieso chap 18


18-61

(ontinuing franchise fees are received in return for the

continuing rights granted by the franchise agreement and for

providing such services as management training advertising

and promotion legal assistance and other support.

ranchisors report continuing fees as re!enue ,hen they are

earned and receivable from the franchisee.

Coninuing =ranc(i"e =ee"


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8/18/2019 Kieso chap 18


(opyright Q 211 ;ohn 7iley O %ons Inc. All rights reserved.$eproduction or translation of this ,or+ beyond that permitted in

%ection 11! of the 1! /nited %tates (opyright Act ,ithout the

e>press ,ritten permission of the copyright o,ner is unla,ful.

$euest for further information should be addressed to the

'ermissions Department ;ohn 7iley O %ons Inc. 8he purchaser

may ma+e bac+-up copies for hisJher o,n use only and not for

distribution or resale. 8he 'ublisher assumes no responsibility for

errors omissions or damages caused by the use of these

programs or from the use of the information contained herein.

Co*0rig(Co*0rig(Co*0rig(Co*0rig(

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Kieso chap 18