Indicate whether each of the events described below gives rise to an asset under the definition and characteristics within the Framework. If so, show the amount of the asset. What would the asset be called?

1 A temporary excess of cash is used to purchase shares in BHP for $8500.

2 A deposit of $5000 is paid on custom-designed equipment to be completed and delivered next year. The total purchase price of this equipment will be $20 000.

3 A supplier sends notice that $900 worth of raw materials has been shipped by freight, with payment due in 30 days. The buyer obtains title to the goods as soon as they are shipped by the seller.

4 A customer places an order for $600 worth of goods.

5 A production manager has been hired to oversee the company’s operations, with employment commencing next month. One-twelfth of the annual salary of $96 000 is to be paid at the end of each month worked.

6 Inventory is acquired at a list price of $1200, with payment made in time to secure a 2 per cent discount for prompt settlement. Cash discounts are treated as a reduction in the acquisition cost of the inventory.