1. You were auditing the intangible assets of 555 Company when you noticed that part of the balance were for a subscription to an email list of customer leads obtained from the marketing company OptinMaster for a monthly fee of $1,500. The email list were capitalized as each customer leads given during the month were stored in the company database and were sent promotions for items that matches their previous preferences. The company had been paying for these lists for the past 3 years, and their database now includes over 30,000 emails, with an average of 750-900 new emails added monthly. Of the emails being sent for each promotional campaign, 5% to 7% materialize as sales. (a) Is the entity correct in classifying this as an asset? Or should this be classified as an expense? Why? (b) What adjusting journal entries would you propose?