As the recently appointed auditor for Grouper Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2017, are prepared. The controller for Grouper Corporation mentions that only one account is kept for intangible assets. The account is shown below.

Intangible Assets
				Debit		Credit		Balance
Jan. 4		Research and development costs		936,000				936,000
Jan. 5		Legal costs to obtain patent		73,440				1,009,440
Jan. 31		Payment of 7 months rent on property
		leased by Bryan		88,200				1,097,640
Feb. 11		Premium on common stock				236,000		861,640
March 31		Unamortized bond discount on bonds
		due March 31, 2037		98,400				960,040
April 30		Promotional expenses related to
		start-up of business		216,100				1,176,140
June 30		Operating losses for first 6 months		245,000				1,421,140

Prepare the entries necessary to correct this account. Assume that the patent has a useful life of 10 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)