Smooth Blend, Inc., a calendar year company, produces several
blends of whiskey. Maturing whiskey is stored for 3 years in a
large, dark aromatic warehouse owned by Smooth Blend. Smooth Blend
sells the whiskey to Distributor Company at the beginning of the
aging process (January 1, 2011). Distributor Company will pick up
the whiskey at the end of the aging process (December 31, 2013) and
take it to its facilities for bottling. Distributor Company pays
the full purchase price to...