WGS spends $10 million on Research and Development to develop a new calorie-free salad dressing. Half of the total was for research, and the other half on development. The R&D is successful, and WGS acquires a patent on this new product. The cost of filing the paperwork and other procedures to obtain the patent is $0.5 million.

1. Indicate whether each transaction immediately gives rise to an asset under U.S. GAAP.

2. If Winkle Grocery Store recognizes an asset, state the account title, the amount, and the classification of the asset on the balance sheet as either current or noncurrent asset.