Quicksand Investment Company bought 10,000 lottery tickets for what they thought was a surefire investment. Each ticket cost one dollar and pays $10 if it wins, zero otherwise. The probability of a single lottery ticket winning is only 1%. The drawing will occur next week but the firm must prepare its financial statements today.

a. Is a single lottery ticket an accounting asset?

b. Is the companys total investment in lottery tickets an accounting asset? If so, what amount would be recognized as an asset under GAAP?

c. Is the $10,000 investment an economic asset? If so, what amount would you regard as the assets economic value?