Asset recognition and valuation. The transactions listed below relate to McDonald's, a fast food chain. Indicate whether or not each transaction immediately gives rise to an asset under GAAP. If accounting recognizes an asset, state the account title, the amount, and classification of the asset on the balance sheet as a current asset or a noncurrent asset.

a. The firm spends S2.500.000 to develop and test-market a new dinner meal. It intends to launch the new product nationally next month.

b. The firm spends $3,900,000 to acquire rights to prepare and sell a new sugar-free dessert bar.

c. The firm spends $2. 800.000 to obtain options to purchase land as future sites for its McDonald's restaurants.

d. The firm spends $920,000 for television advertisements that appeared last month.

e. The firm issues shares of its common stock currently selling on the market for

$20,000,000 for 40 percent of the shares of Philadelphia Markets, another restaurant chain. Recent appraisals suggest that a 40 percent share of Philadelphia Markets is worth between SI 8.000.000 and $22,000,000. McDonald's intends to hold these shares as a long-term investment.

f. The firm acquires land and a building costing $5,000,000 by paying SI. 200.000 in cash and signing a promissory note for the remaining $3,800,000 of the purchase price.

McDonald's expends S80.000 for a title search and other legal fees. $6,000 in recording fees with the state of Illinois, and $180,000 to destroy the building. McDonald's intends to use the land for a parking lot.