Problem 1-7 Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $26,000 and has cash on hand of $23.000 contributed by Lanni's owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction? a. Lanni takes out a bank loan. It receives $37.000 in cash and signs a note promising to pay back the loan over 3 years. 7 The bank loan is a financial liability The new financial asset created for Lanni, and a financial asset for the bank. The cash Lanni receives is a financial asset Vis Lanni's promissory note to repay the loan. b. Lanni uses the cash from the bank plus $23.000 of its own funds to finance the development of new financial planning software. Lanni transfers financial asset a real asset (cash) to the software developers. In return. Lanni receives the completed software package, which is c. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1.150 shares of Microsoft stock. Lanni exchanges the real asset (the software) for a financial asset . which is 1.150 shares of Microsoft stock. If Microsoft issues new shares in order to pay Lanni, then this would represent the creation of new financial asset d. Lanni sells the shares of stock for $62 per share and uses part of the proceeds to pay off the bank loan. By selling its shares in Microsoft, Lanni exchanges one financial asset (1.150 shares of stock) for another ($71,300 in cash). Lanni uses the financial asset of $37,000 in cash to repay the bank and retire its promissory note. The bank must return its real asset to Lanni. The loan is destroyed in the transaction, since it is retired when paid off and no longer exists