Liability recognition and valuation. The transactions below relate to Kansas City Royals, Inc., owner of a professional baseball team, and Kauffman Stadium. Indicate whether or not each of the following transactions immediately gives rise to a liability of the firm under GAAP. If accounting recognizes a liability, state the account title and amount.

a. The firm signs a five-year contract with Joe Superstar for \(\$ 7,400,000\) per year. The contract period begins on February 1 of next year.

b. The firm receives \(\$ 2,700,000\) from sales of season tickets for the baseball season starting April 1 of next year.

c. The firm issues bonds in the principal amount of \(\$ 8,000,000\) for \(\$ 8,400,000\). The bonds mature in 20 years and bear interest at 8 percent per year. The firm intends to use the proceeds to expand Kauffman Stadium.

d. The firm receives a bill for utility services received last month totaling \(\$ 3,400\).

e. The firm receives notice that a former player has filed suit against Kansas City Royals, Inc., alleging nonperformance of contractual terms. The player claims \(\$ 10,000,000\) in damages.

f. The firm orders new uniforms for the team for the baseball season beginning next spring. The contract calls for a \(\$ 10,000\) deposit upon signing the contract and a

\(\$ 15,000\) payment on delivery of the uniforms in February of next year. The firm signs the contract and sends a check for \(\$ 10,000\).