Assume that Seagram guarantees an ultimate selling price that pays the lender both the original purchase price and a reasonable return over that amount. In this case, Seagram bears the economic risks and must show a liability on its balance sheet. If, however, the lender does not require Seagram to guarantee a minimum selling price for the whiskey, the lender bears both the risk of market prices changes and the uncertainty about the quality of the aged whiskey. In this case, Seagram will likely record the transaction as a sale and not a loan.

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