Asset recognition and valuation. The transactions listed below relate to General Mills, Inc., a consumer foods company. Indicate whether or not each transaction immediately gives rise to an asset under GAAP. If accounting recognizes an asset, state the account title and amount.

a. The firm spends \(\$ 3,400,000\) to develop and test-market a new breakfast cereal. It intends to launch the new product nationally next month.

b. The firm spends \(\$ 2,800,000\) to acquire rights to manufacture and sell a new lowcholesterol, salt-free cake mix developed by a local Minneapolis resident.

c. The firm spends \(\$ 1,800,000\) to obtain options to purchase land as future sites for its Red Lobster and Olive Garden restaurant chains.

d. The firm spends \(\$ 760,000\) for television advertisements that appeared last month.

e. The firm issues shares of its common stock currently selling on the market for \(\$ 3,500,000\) for 30 percent of the shares of Pizza-to-Go Restaurants, Inc., a regional, family-owned pizza chain. Recent appraisals suggest that a 30 percent share of Pizza-to-Go is worth between \(\$ 3,200,000\) and \(\$ 4,000,000\). General Mills intends to hold these shares as a long-term investment.

f. The firm acquires land and a building costing \(\$ 2,000,000\) by paying \(\$ 800,000\) in cash and signing a promissory note for the remaining \(\$ 1,200,000\) of the purchase price. General Mills expends \(\$ 60,000\) for a title search and other legal fees, \(\$ 8,000\) in recording fees with the state of Minnesota, and \(\$ 120,000\) to destroy the building. General Mills intends to use the land for a parking lot.