Asset recognition and valuation. The following transactions relate to IBM Corporation, a manufacturer of electronic equipment and provider of computer services. Indicate whether or not each transaction immediately gives rise to an asset of the company under GAAP. If accounting recognizes an asset, state the account title, the amount, and the classification of the asset on the balance sheet as either a current asset or a noncurrent asset.

a. The firm invests S8.000.000 in a government bond. The bond has a maturity value of SI 0.000.000 in three years, and IBM intends to hold the bond to maturity.

b. The firm sends a check for $600,000 to a landlord for two months" rent in advance on warehouse facilities. The rental period begins next month.

c. The firm writes a check for SI. 000.000 to obtain an option to purchase a tract of land. The price of the land is Si 0.000.000.

d. The firm signs a four-year employment agreement with its president for S30.000.000 per year. The contract period begins next month.

e. The firm purchases a patent on a laser printer from its creator for $8,500,000.

f. The firm receives a patent on a new computer processor that it developed. The firm spent

$3,200,000 to develop the patented invention.

g. The firm received notice that a supplier had shipped by freight memory chips billed at S 1 2.000.000. with payment due in 30 days. The seller retains title to the memory chips until received by the buyer.