Directory UMM :wiley:Public:college:accounting:kimmel:
Financial Accounting:
Tools for Business Decision Making
Kimmel, Weygandt, Kieso
S
EL
Chapter
12
`
Chapter 12
Reporting and Analyzing Investments
After studying Chapter 12, you should be
able to:
Identify the reasons corporations invest in stocks and
debt securities.
Explain the accounting for debt investments.
Explain the accounting for stock investments.
Describe the purpose and usefulness of consolidated
financial statements.
Indicate how debt and stock investments are valued and
reported in the financial statements.
Distinguish between temporary and long-term
investments.
3
Page 542 in Book
Reasons Companies Invest
Excess Cash
Excess cash is often invested to earn,
through interest and dividends, a greater
return that would be earned from holding
funds in the bank.
Companies experiencing seasonal
fluctuations in sales often have excess cash
at the end of an operating cycle.
Excess cash may result from economic
cycles. During periods of economic growth,
companies may generate excess cash.
5
Page 541 in Book
Temporary Investments
and the Operating Cycle
Investment Income
Although banks earn most of their earnings
by lending money, they also generate earnings
by investing in debt and equity securities.
Pension funds and mutual funds invest excess
funds for speculative reasons.
Pension funds and mutual funds invest in
common stock of other corporations hoping
the investment will increase in value and
thus result in positive returns.
7
Invest for Strategic Reasons
A company may purchase a noncontrolling
interest in another firm in a related industry
to establish a presence.
A corporation may purchase a controlling
interest in another company in order to enter
a new industry without incurring the
tremendous cost and risks associated with
starting from scratch.
A company may purchase a company in the
same industry.
8
Vertical and Horizontal
Acquisition
Vertical acquisition would
occur if Nike purchased a
chain of athletic shoe stores.
Horizontal acquisition would
occur if Nike purchased
Reebok.
9
Debt Investments
Investments in government and
corporation bonds
In accounting for debt investments,
entries are required to record:
the acquisition
the interest revenue
the sale
10
Debt Investments
•Apply the cost principal
•The charge to the investment account
includes all cost associated with The
acquisition, such as brokerage fees.
Jan 1 Debt investments
54,000
Cash
54,000
To record purchase of 50 Doan, Inc.,
bonds
11
Bond Interest
The bonds pay interest of $3,000 semiannually on
July 1 and January 1.
The entry to record the receipt of interest on July
1 is:
July 1 Cash
3,000
Interest Revenue
3,000
(To record receipt of interest on Doan,
Inc., bonds)
12
Accrued Bond Interest
If the buyer’s (Kuhl) fiscal year ends on
December 31, the following adjusting entry is
needed to accrue interest of $3,000 earned since
July 1:
Dec. 31 Interest Receivable
3,000
Interest Revenue
3,000
(To accrue interest on Doan, Inc., bonds)
13
Bond Interest
Interest Receivable is reported as a current asset
in the balance sheet.
Interest Revenue is reported under Other
Revenues and Gains in the income statement.
When the interest is received on January 1, the
entry is:
Jan. 1 Cash
3,000
Interest Receivable
3,000
(To record receipt of accrued interest)
14
Sale of Bonds
Assume that Kuhl sells the bonds for $58,000 on
January 1, 1999, after receiving the interest due.
Remember, the bonds were purchased for $54,000.
Therefore Kuhl must record a gain of $4,000. The
entry to record the sale of the bonds is as follows:
1/1 Cash
58,000
Debt Investments
54,000
Gain on sale of Debt Investments 4,000
(To record sale of Doan Inc. bonds)
15
Stock Investments
Investments in the capital stock of
corporations
When a company holds stock and/or debt of
several different corporations, the group of
securities is identified as an investment
portfolio.
The accounting for investments in common
stock is based on the extent of the investor's
influence over the operating and financial
affairs of the issuing corporation (the
16
investee).
Stock Investments
In some cases, depending on the degree of investor
influence, net income of the investee is considered to
be income of the investor.
The presumed influence may be negated by
extenuating circumstances.
A company that acquires 25% interest in another
company in a "hostile" take-over may not have any
significant influence over the investee.
Companies are required to use judgment instead of
blindly following the guidelines.
17
Stock Investments
Factors that should be considered in
determining an investor's influence are
whether :
(1) the investor has representation on the investee's
board of directors;
(2) the investor participates in the investee's policymaking process;
(3) there are material transactions between the
investor and the investee; and
(4) the common stock held by other stockholders is
concentrated or dispersed.
18
Page 545 in Book
Accounting Guidelines for
Stock Investments
Cost Method
Under the cost method, the investment is
recorded at cost, and revenue is
recognized only when cash dividends are
received.
Cost includes all expenditures necessary
to acquire these investments, such as the
price paid plus brokerage fees
(commissions), if any.
20
Acquisition of Stock
On July 1, 1996, Sanchez Corporation acquires
1,000 shares (10% ownership) of Beal
Corporation common stock at $40 per share plus
brokerage fees of $500.
The entry for the purchase is:
July 1 Stock Investments
40,500
Cash
40,500
(To record purchase of 1,000 shares of
Beal common stock)
21
Recording Dividends
The following entry is required to record a
$2.00 per share dividend received by
Sanchez Corporation on December 31:
Dec. 1 Cash (1,000 x $2)
2,000
Dividend Revenue
2,000
(To record receipt of cash dividend)
22
Sale of Stock
When stock is sold, the
difference between the
net proceeds from the
sale (sales price less
brokerage fees) and the
cost of the stock is
recognized as a gain or a
loss.
23
Sale of Stock
Assume that Sanchez Corporation receives net proceeds of
$39,500 on the sale of its Beal Corporation stock on
February 10, 1997.
Since the stock cost $40,500, a loss of $1,000 has been
incurred.
The entry to record the sale is:
1/1 Cash
39,500
Loss on Sale of Stock
Investments
1,000
Stock Investments
40,500
(To record sale of Beal common stock)
24
Sale of Stock
A loss would be reported under
Other Expenses and Losses in
the income statement.
A gain on a sale would be shown
under Other Revenues and Gains.
25
Holdings Between
20% and 50%
When an investor company owns only a small
portion of the shares of stock of another
company (the investee), the investor cannot
exercise control over the company.
When an investor owns between 20% and
50% of the common stock of a corporation it
is generally presumed the investor has
significant influence over the financial and
operating activities of the investee.
26
Holdings Between
20% and 50%
At this level of investment, the investor
probably has a representative on the
investee's board of directors.
With a representative on the board, the
investor begins to exercise some control
over the investee--and the investee
company in some sense really becomes
part of the investor company.
27
Equity Method
An accounting method in which the
investment in common stock is initially
recorded at cost, and the investment
account is then adjusted annually to
show the investor’s equity in the
investee
28
Equity Method
Failure to recognize the
investors share of net
income until a cash dividend
is declared ignores the fact
that the investor and
investee are, in some sense,
one company.
29
Acquisition of Stock
Assume Milar Corporation acquires 30% of the
common stock of Beck Company of $120,000 on
January 1, 1998.
The entry to record this transaction is:
Jan. 1 Stock Investments
120,000
Cash
120,000
(To record purchase of Beck common
stock)
30
Revenue and Dividends
For 1998 Beck reports net income of
$100,000 and declares and pays a
$40,000 cash dividend.
Milar is required to record
(1) its share of Beck's income, $30,000
(100,000 x 30%), and
(2) the reduction in the investment account
for the dividends received, $12,000
($40,000 x 30%).
31
Revenue and Dividends
12/31 Stock Investments
Revenue from Investment
in Beck Company
30,000
12/31 Cash
Stock Investments
12,000
12,000
30,000
(To record 30% equity in Beck's 1998 net income)
(To record dividends received)
During the year the investment account has
increased by $18,000 ($30,000 - $12,000).
32
Holdings of More than 50%
A company that owns more than 50% of
the common stock of another entity is
known as the parent company.
The entity whose stock is owned by the
parent company is called the subsidiary
(affiliated) company.
33
Consolidated
Financial Statements
When a company owns more than 50% of
the common stock of another company,
consolidated financial statements are
usually prepared.
Consolidated financial statements present
the assets and liabilities controlled by the
parent company and the aggregate
profitability of the subsidiary companies.
34
Consolidated
Financial Statements
Prepared in addition to the financial statements
for each of the individual parent and subsidiary
companies
Especially useful to the stockholders, board of
directors, and management of the parent
company
Inform creditors, prospective investors, and
regulatory agencies as to the magnitude and
scope of operations of the companies under
35
common control
Valuation and Reporting of
Investments
Many argue that fair value - the amount for
which a security could be sold in a normal
market - offers the best approach because it
represents the expected cash realizable
value of securities.
Others contend that unless a security is
going to be sold soon, the fair value is not
relevant because the price of the security
will likely change again.
36
Valuation and Reporting of
Investments
Debt and stock investments are
classified into the following three
categories:
Trading securities
Available-for-sale securities
Held-to-maturity securities
37
Trading Securities
Securities bought and held primarily for
sale in the near term to generate income on
short-term price differences
Reported at fair value
referred to as mark-tomarket accounting
Changes from cost are
reported in net income.
38
Available-for-Sale Securities
Securities that may be sold in the future
Reported at fair value
referred to as mark-tomarket accounting
Changes from cost are
reported in the stockholders’ equity section.
39
Held-to-Maturity Securities
Debt securities that
the investor has the
intent and the
ability to hold to
maturity
More will be
covered in
advanced courses
40
Investment Portfolio
Under the accounting standards for reporting
investments in debt securities and equity
investments of less than 20% that were introduced
in 1993, companies can choose which of the three
categories of securities to use for an investment.
Unfortunately, under these new standards,
companies can "window-dress" their reported
earnings results - that is, make net income look
better than it really was.
41
Investment Portfolio
Gains and losses on investments classified as
available-for-sale are not included in income,
but rather are recorded an adjustment to
equity.
A company wanting to manage its reported
income can sell those available-for-sale
investments that have unrealized losses and not
sell those available-for-sale investments that
have unrealized losses, deferring the losses
until a later period.
42
Temporary and Long-Term
Investments
For balance sheet
presentation, investments
must be classified as either
temporary or long-term.
43
Temporary Investments
Temporary investments are securities
held by a company that are:
readily marketable and
intended to be converted into cash within
the next year or operating cycle, whichever
is longer.
Readily Marketable - an investment is
readily marketable when it can be sold
easily whenever the need for cash arises.
44
Temporary Investments
Because of their high liquidity,
temporary investments are listed
immediately below Cash in the
current asset section of the balance
sheet.
Temporary investments are shown at
their fair value.
45
Long-Term Investments
Long-term investments are generally
reported in a separate section of the
balance sheet immediately below Current
Assets.
Long-term investments in available-for-sale
securities are reported at fair value and
investments in common stock accounted for
under the equity method are reported at
equity.
46
Gains and
Losses on Investments
Gains and losses on investments, whether realized or
unrealized, must be presented in the financial
statements.
In the income statement, gains and losses, as well as
interest and dividend revenue, are reported in the
nonoperating section under the following categories:
Other Revenue and Gains
Interest Revenue
Dividend Revenue
Gain on Sale of Investments
Unrealized Gain--Income
Other Expenses and Losses
Loss on Sales of Investments
Unrealized Loss--Income
47
Gains and
Losses on Investments
In an earlier section, it was noted that an
unrealized gain or loss on available-forsale securities is reported as a separate
component of stockholders' equity.
Assuming Dawson Inc. has common stock
of $3,000,000, retained earnings of
$1,500,000, and an unrealized loss on
available-for-sale securities of $100,000.
48
Page 555 in Book
Gains and
Losses on Investments
DAWSON INC.
Partial Balance Sheet
Stockholders' equity
Common stock $ 3,000,000
Retained earnings
1,500,000
Total paid-in capital
4,500,000
and retained earnings
Less: Unrealized loss on
(100,000)
available-for-sale securities
Total stockholders' equity $ 4,400,000
49
Gains and
Losses on Investments
Note that the presentation of the loss is similar to
the presentation of the cost of treasury stock in
the stockholders' equity section.
Reporting the unrealized gain or loss in the
stockholders' equity section serves two important
purposes:
It reduces the volatility of net income due to
fluctuations in fair value, and
It informs the financial statement user of the gain
or loss that would occur if the securities were sold
50
at fair value.
COP Y R I GHT
Copyright © 1999, John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
express written permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser
may make back-up copies for his/her own use only and not for
distribution or resale. The Publisher assumes no responsibility
for errors, omissions, or damages, caused by the use of these
programs or from the use of the information contained herein.
51
Tools for Business Decision Making
Kimmel, Weygandt, Kieso
S
EL
Chapter
12
`
Chapter 12
Reporting and Analyzing Investments
After studying Chapter 12, you should be
able to:
Identify the reasons corporations invest in stocks and
debt securities.
Explain the accounting for debt investments.
Explain the accounting for stock investments.
Describe the purpose and usefulness of consolidated
financial statements.
Indicate how debt and stock investments are valued and
reported in the financial statements.
Distinguish between temporary and long-term
investments.
3
Page 542 in Book
Reasons Companies Invest
Excess Cash
Excess cash is often invested to earn,
through interest and dividends, a greater
return that would be earned from holding
funds in the bank.
Companies experiencing seasonal
fluctuations in sales often have excess cash
at the end of an operating cycle.
Excess cash may result from economic
cycles. During periods of economic growth,
companies may generate excess cash.
5
Page 541 in Book
Temporary Investments
and the Operating Cycle
Investment Income
Although banks earn most of their earnings
by lending money, they also generate earnings
by investing in debt and equity securities.
Pension funds and mutual funds invest excess
funds for speculative reasons.
Pension funds and mutual funds invest in
common stock of other corporations hoping
the investment will increase in value and
thus result in positive returns.
7
Invest for Strategic Reasons
A company may purchase a noncontrolling
interest in another firm in a related industry
to establish a presence.
A corporation may purchase a controlling
interest in another company in order to enter
a new industry without incurring the
tremendous cost and risks associated with
starting from scratch.
A company may purchase a company in the
same industry.
8
Vertical and Horizontal
Acquisition
Vertical acquisition would
occur if Nike purchased a
chain of athletic shoe stores.
Horizontal acquisition would
occur if Nike purchased
Reebok.
9
Debt Investments
Investments in government and
corporation bonds
In accounting for debt investments,
entries are required to record:
the acquisition
the interest revenue
the sale
10
Debt Investments
•Apply the cost principal
•The charge to the investment account
includes all cost associated with The
acquisition, such as brokerage fees.
Jan 1 Debt investments
54,000
Cash
54,000
To record purchase of 50 Doan, Inc.,
bonds
11
Bond Interest
The bonds pay interest of $3,000 semiannually on
July 1 and January 1.
The entry to record the receipt of interest on July
1 is:
July 1 Cash
3,000
Interest Revenue
3,000
(To record receipt of interest on Doan,
Inc., bonds)
12
Accrued Bond Interest
If the buyer’s (Kuhl) fiscal year ends on
December 31, the following adjusting entry is
needed to accrue interest of $3,000 earned since
July 1:
Dec. 31 Interest Receivable
3,000
Interest Revenue
3,000
(To accrue interest on Doan, Inc., bonds)
13
Bond Interest
Interest Receivable is reported as a current asset
in the balance sheet.
Interest Revenue is reported under Other
Revenues and Gains in the income statement.
When the interest is received on January 1, the
entry is:
Jan. 1 Cash
3,000
Interest Receivable
3,000
(To record receipt of accrued interest)
14
Sale of Bonds
Assume that Kuhl sells the bonds for $58,000 on
January 1, 1999, after receiving the interest due.
Remember, the bonds were purchased for $54,000.
Therefore Kuhl must record a gain of $4,000. The
entry to record the sale of the bonds is as follows:
1/1 Cash
58,000
Debt Investments
54,000
Gain on sale of Debt Investments 4,000
(To record sale of Doan Inc. bonds)
15
Stock Investments
Investments in the capital stock of
corporations
When a company holds stock and/or debt of
several different corporations, the group of
securities is identified as an investment
portfolio.
The accounting for investments in common
stock is based on the extent of the investor's
influence over the operating and financial
affairs of the issuing corporation (the
16
investee).
Stock Investments
In some cases, depending on the degree of investor
influence, net income of the investee is considered to
be income of the investor.
The presumed influence may be negated by
extenuating circumstances.
A company that acquires 25% interest in another
company in a "hostile" take-over may not have any
significant influence over the investee.
Companies are required to use judgment instead of
blindly following the guidelines.
17
Stock Investments
Factors that should be considered in
determining an investor's influence are
whether :
(1) the investor has representation on the investee's
board of directors;
(2) the investor participates in the investee's policymaking process;
(3) there are material transactions between the
investor and the investee; and
(4) the common stock held by other stockholders is
concentrated or dispersed.
18
Page 545 in Book
Accounting Guidelines for
Stock Investments
Cost Method
Under the cost method, the investment is
recorded at cost, and revenue is
recognized only when cash dividends are
received.
Cost includes all expenditures necessary
to acquire these investments, such as the
price paid plus brokerage fees
(commissions), if any.
20
Acquisition of Stock
On July 1, 1996, Sanchez Corporation acquires
1,000 shares (10% ownership) of Beal
Corporation common stock at $40 per share plus
brokerage fees of $500.
The entry for the purchase is:
July 1 Stock Investments
40,500
Cash
40,500
(To record purchase of 1,000 shares of
Beal common stock)
21
Recording Dividends
The following entry is required to record a
$2.00 per share dividend received by
Sanchez Corporation on December 31:
Dec. 1 Cash (1,000 x $2)
2,000
Dividend Revenue
2,000
(To record receipt of cash dividend)
22
Sale of Stock
When stock is sold, the
difference between the
net proceeds from the
sale (sales price less
brokerage fees) and the
cost of the stock is
recognized as a gain or a
loss.
23
Sale of Stock
Assume that Sanchez Corporation receives net proceeds of
$39,500 on the sale of its Beal Corporation stock on
February 10, 1997.
Since the stock cost $40,500, a loss of $1,000 has been
incurred.
The entry to record the sale is:
1/1 Cash
39,500
Loss on Sale of Stock
Investments
1,000
Stock Investments
40,500
(To record sale of Beal common stock)
24
Sale of Stock
A loss would be reported under
Other Expenses and Losses in
the income statement.
A gain on a sale would be shown
under Other Revenues and Gains.
25
Holdings Between
20% and 50%
When an investor company owns only a small
portion of the shares of stock of another
company (the investee), the investor cannot
exercise control over the company.
When an investor owns between 20% and
50% of the common stock of a corporation it
is generally presumed the investor has
significant influence over the financial and
operating activities of the investee.
26
Holdings Between
20% and 50%
At this level of investment, the investor
probably has a representative on the
investee's board of directors.
With a representative on the board, the
investor begins to exercise some control
over the investee--and the investee
company in some sense really becomes
part of the investor company.
27
Equity Method
An accounting method in which the
investment in common stock is initially
recorded at cost, and the investment
account is then adjusted annually to
show the investor’s equity in the
investee
28
Equity Method
Failure to recognize the
investors share of net
income until a cash dividend
is declared ignores the fact
that the investor and
investee are, in some sense,
one company.
29
Acquisition of Stock
Assume Milar Corporation acquires 30% of the
common stock of Beck Company of $120,000 on
January 1, 1998.
The entry to record this transaction is:
Jan. 1 Stock Investments
120,000
Cash
120,000
(To record purchase of Beck common
stock)
30
Revenue and Dividends
For 1998 Beck reports net income of
$100,000 and declares and pays a
$40,000 cash dividend.
Milar is required to record
(1) its share of Beck's income, $30,000
(100,000 x 30%), and
(2) the reduction in the investment account
for the dividends received, $12,000
($40,000 x 30%).
31
Revenue and Dividends
12/31 Stock Investments
Revenue from Investment
in Beck Company
30,000
12/31 Cash
Stock Investments
12,000
12,000
30,000
(To record 30% equity in Beck's 1998 net income)
(To record dividends received)
During the year the investment account has
increased by $18,000 ($30,000 - $12,000).
32
Holdings of More than 50%
A company that owns more than 50% of
the common stock of another entity is
known as the parent company.
The entity whose stock is owned by the
parent company is called the subsidiary
(affiliated) company.
33
Consolidated
Financial Statements
When a company owns more than 50% of
the common stock of another company,
consolidated financial statements are
usually prepared.
Consolidated financial statements present
the assets and liabilities controlled by the
parent company and the aggregate
profitability of the subsidiary companies.
34
Consolidated
Financial Statements
Prepared in addition to the financial statements
for each of the individual parent and subsidiary
companies
Especially useful to the stockholders, board of
directors, and management of the parent
company
Inform creditors, prospective investors, and
regulatory agencies as to the magnitude and
scope of operations of the companies under
35
common control
Valuation and Reporting of
Investments
Many argue that fair value - the amount for
which a security could be sold in a normal
market - offers the best approach because it
represents the expected cash realizable
value of securities.
Others contend that unless a security is
going to be sold soon, the fair value is not
relevant because the price of the security
will likely change again.
36
Valuation and Reporting of
Investments
Debt and stock investments are
classified into the following three
categories:
Trading securities
Available-for-sale securities
Held-to-maturity securities
37
Trading Securities
Securities bought and held primarily for
sale in the near term to generate income on
short-term price differences
Reported at fair value
referred to as mark-tomarket accounting
Changes from cost are
reported in net income.
38
Available-for-Sale Securities
Securities that may be sold in the future
Reported at fair value
referred to as mark-tomarket accounting
Changes from cost are
reported in the stockholders’ equity section.
39
Held-to-Maturity Securities
Debt securities that
the investor has the
intent and the
ability to hold to
maturity
More will be
covered in
advanced courses
40
Investment Portfolio
Under the accounting standards for reporting
investments in debt securities and equity
investments of less than 20% that were introduced
in 1993, companies can choose which of the three
categories of securities to use for an investment.
Unfortunately, under these new standards,
companies can "window-dress" their reported
earnings results - that is, make net income look
better than it really was.
41
Investment Portfolio
Gains and losses on investments classified as
available-for-sale are not included in income,
but rather are recorded an adjustment to
equity.
A company wanting to manage its reported
income can sell those available-for-sale
investments that have unrealized losses and not
sell those available-for-sale investments that
have unrealized losses, deferring the losses
until a later period.
42
Temporary and Long-Term
Investments
For balance sheet
presentation, investments
must be classified as either
temporary or long-term.
43
Temporary Investments
Temporary investments are securities
held by a company that are:
readily marketable and
intended to be converted into cash within
the next year or operating cycle, whichever
is longer.
Readily Marketable - an investment is
readily marketable when it can be sold
easily whenever the need for cash arises.
44
Temporary Investments
Because of their high liquidity,
temporary investments are listed
immediately below Cash in the
current asset section of the balance
sheet.
Temporary investments are shown at
their fair value.
45
Long-Term Investments
Long-term investments are generally
reported in a separate section of the
balance sheet immediately below Current
Assets.
Long-term investments in available-for-sale
securities are reported at fair value and
investments in common stock accounted for
under the equity method are reported at
equity.
46
Gains and
Losses on Investments
Gains and losses on investments, whether realized or
unrealized, must be presented in the financial
statements.
In the income statement, gains and losses, as well as
interest and dividend revenue, are reported in the
nonoperating section under the following categories:
Other Revenue and Gains
Interest Revenue
Dividend Revenue
Gain on Sale of Investments
Unrealized Gain--Income
Other Expenses and Losses
Loss on Sales of Investments
Unrealized Loss--Income
47
Gains and
Losses on Investments
In an earlier section, it was noted that an
unrealized gain or loss on available-forsale securities is reported as a separate
component of stockholders' equity.
Assuming Dawson Inc. has common stock
of $3,000,000, retained earnings of
$1,500,000, and an unrealized loss on
available-for-sale securities of $100,000.
48
Page 555 in Book
Gains and
Losses on Investments
DAWSON INC.
Partial Balance Sheet
Stockholders' equity
Common stock $ 3,000,000
Retained earnings
1,500,000
Total paid-in capital
4,500,000
and retained earnings
Less: Unrealized loss on
(100,000)
available-for-sale securities
Total stockholders' equity $ 4,400,000
49
Gains and
Losses on Investments
Note that the presentation of the loss is similar to
the presentation of the cost of treasury stock in
the stockholders' equity section.
Reporting the unrealized gain or loss in the
stockholders' equity section serves two important
purposes:
It reduces the volatility of net income due to
fluctuations in fair value, and
It informs the financial statement user of the gain
or loss that would occur if the securities were sold
50
at fair value.
COP Y R I GHT
Copyright © 1999, John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
express written permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser
may make back-up copies for his/her own use only and not for
distribution or resale. The Publisher assumes no responsibility
for errors, omissions, or damages, caused by the use of these
programs or from the use of the information contained herein.
51