Indicate whether or not each of the following events immediately gives rise to an asset. If an asset is recognized, state an account title and amount.

a An investment of $8,000 is made in a government bond. The bond will have a maturity value of $10,000 in 3 years.

b An order for $600 of merchandise is received from a customer. '

c Merchandise inventory with a list price of $300 is purchased, with payment being made in time to secure a 2-percent discount for prompt payment.

d Notice has been received from a manufacturer that materials billed at $4,000, with payment due within 30 days, have been shipped by freight. The seller retains title to the materials until they are received by the buyer.

e A contract is signed for the construction ofa specially designed piece of machinery. The terms are $5,000 down upon signing the contract and the balance of $8,000 upon delivery of the equipment. Consider this question from the standpoint of the purchaser.

f A check for $900 is sent to a landlord for 2 months’ rent in advance (consider from the standpoint of the tenant, often called the /essee).

g A check for $1,000 is written to obtain an option to purchase a tract of land. The price of the land is $32,500. Consider from the standpoint of the person writing the check.

h Bonds with a face value of $100,000 are purchased for $96,000. The bonds mature in 25 years. Interest is payable by the issuer of the bonds at the rate of 8 percent annually.