As the recently appointed auditor for Daleara Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2020, are prepared. The controller for Daleara Corporation mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2020, are as follows:

Instructions

Prepare the entry or entries needed to correct this account. Assume that the patent has a useful life of 10 years and that Daleara Corporation follows IFRS.

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Intangible Assets Debit Credit Balance Research costs Jan. 4 1,050,000 1,050,000 Legal costs to obtain patent Payment of seven months' rent on property leased by Daleara (February to August) 1,095,000 45,000 49,000 1,144,000 Feb. 11 Proceeds from issue of common shares 296,000 848,000 Promotional expenses related to start-up Apr. 30 of business 1,005,000 157,000 Development stage costs (meet all six development stage criteria) Start-up costs for first six months of operations June 1 215,000 1,220,000 30 316,000 1,536,000