State whether or not an asset should be recorded in the balance sheet of WXY Ltd as at 30 June 2022 in each of the following situations. State the amount (if any) of the asset, and any assumptions made.

1 On 1 June 2022, XYZ Ltd paid Insurance Ltd $40 000 for an insurance premium. The premium covers losses incurred due to fire, theft or other causes up to 31 May 2023.

2 XYZ Ltd paid $50 000 for a patent in April 2022.

3 XYZ Ltd has just hired a new general manager who is an expert in the business carried on by XYZ Ltd. With the help of this person, the company is expected to increase its annual profits by $850 000. The general manager’s salary is $500 000 per annum.

4 XYZ Ltd purchased land in 2015 for $3 million. The market value of this land is $5 million as at 30 June 2022.

5 Equipment purchased for $1 million and costs an additional $300 000 to install.

6 Purchased a computer with a ‘sticker price’ of $3200 but because they were a regular customer XYZ was charged only $2700.