Adama Company incurred the following costs. Indicate to which account Adama would debit each of the costs.1. Sales tax on factory machinery purchased $ 5,000 Select the account to be debited Land ImprovementsLandPrepaid 2. Painting of and lettering on truck immediately upon purchase 700 Select the account to be debited Prepaid InsuranceBuildingLand 3. Installation and testing of factory machinery 2,000 Select the account to be debited Prepaid Improvements4. Real estate broker’s commission on land purchased 3,500 Select the account to be debited Prepaid Improvements5. Insurance premium paid for first year’s insurance on new truck 880 Select the account to be debited EquipmentPrepaid InsuranceLand ImprovementsBuildingLand6. Cost of landscaping on property purchased 7,200 Select the account to be debited Prepaid InsuranceLand 7. Cost of paving parking lot for new building constructed 17,900 Select the account to be debited LandEquipmentLand ImprovementsPrepaid InsuranceBuilding8. Cost of clearing, draining, and filling land 13,300 Select the account to be debited BuildingLandLand Insurance9. Architect’s fees on self-constructed building 10,000 Select the account to be debited

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?