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Exercise 12-5 As the recently appointed auditor for Ayayai Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2017, are prepared. The controller for Ayayai Corporation mentions that only one account is kept for intangible assets. The account is shown below. Intangible Assets Debit Credit Balance Jan. 4 930,000 Research and development costs 930,000 1,002,000 Jan. 5 Legal costs to obtain patent 72,000 Jan. 31 Payment of 7 months' rent on property 1,086,000 leased by Bryan 84,000 Feb. 11 Premium on common stock 230,000 856,000 March 31 Unamortized bond discount on bonds due March 31, 2037 940,000 84,000 April 30 Promotional expenses related to start-up of business 207,100 1,147,100 1,387,100 June 30 Operating losses for first 6 months 240,000