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, the amount, and the classification of the liability on the balance sheet as either a current liability or a noncurrent liability.

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 I 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.