As the recently appointed auditor for Bryan Corporation, you have been asked to examine selected accounts before the 6-month fi nancial statements of June 30, 2020, are prepared. The controller for Bryan Corporation mentions that only one account is kept for intangible assets. The account is shown below.

Instructions

Prepare the entry or entries necessary to correct this account. Assume that the patent has a useful life of 10 years.

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Intangible Assets Debit Credit Balance Research and development costs Jan. 4 940,000 940,000 Legal costs to obtain patent Payment of 7 months' rent on property leased by Bryan Premium on common stock Jan. 5 75,000 1,015,000 91,000 1,106,000 Jan. 31 Feb. 11 856,000 250,000 March 31 Unamortized bond discount on bonds 84,000 940,000 due March 31, 2040 April 30 Promotional expenses related to start-up of business 1,147,000 207,000 Operating losses for first 6 months 1,388,000 June 30 241,000