9.On April 1, 2007, Horse & Buggy Enterprises entered into a contract with Saddle Horse Company to provide employee training and motivational seminars to Saddle Horse's employees throughout the U.S....

9.On April 1, 2007, Horse & Buggy Enterprises entered into a contract with Saddle Horse Company to provide employee training and motivational seminars to Saddle Horse's employees throughout the U.S. Horse & Buggy will provide 50 such seminars during the balance of 2007 (starting in June 2007) and 100 seminars during calendar year 2008. Saddle Horse will pay $250,000 for the 2007 seminars and $500,000 for 2008. Does Saddle Horse have a liability to Horse & Buggy at April 1, 2007? Discuss.

10.Define the term "commitment." Is a leased asset a form of commitment? If so, describe how a lease is a commitment.