As the recently appointed auditor for Intelligent Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for Intelligent 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		935,000				935,000
Jan. 5		Legal costs to obtain patent		73,200				1,008,200
Jan. 31		Payment of 7 months rent on property
		leased by Flounder		87,500				1,095,700
Feb. 11		Premium on common stock				235,000		860,700
March 31		Unamortized bond discount on bonds
		due March 31, 2040		96,000				956,700
April 30		Promotional expenses related to
		start-up of business		219,200				1,175,900
June 30		Operating losses for first 6 months		256,500				1,432,400

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