Lucas just placed a non-cancellable order for a new office equipment which will have expected useful life of 5 years at $300,000, with delivery in 24 months and payment in full to be made on delivery. Under the conceptual framework, do you think Lucas should recognize any assets or liability at the time it placed the order?

Group of answer choices

Lucas should not recognize any asset and liability at the time it placed the order.

Lucas should recognize both asset and liability at the time it placed the order.

Lucas should only recognize asset at the time it placed the order.

Lucas should only recognize liability at the time it placed the order.