As the recently appointed auditor for William J. Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2008, are prepared. The controller for William J. 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 10years.

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Intangible Assets Debit 940.000 75,000 Credit Balance - 940,000 Jan. 4 Jan. 5 Jan. 31 Research and development costs Legal costs to obtain patent Payment of 7 months' rent on property 1,015,000 1,106,000 leased by Bryan Premium on common stock Unamortized bond discount on bonds 91,000 250,000 856,000 940,000 1,147,000 Feb. 11 March 31 due March 31, 2028 84,000 April 30 Promotional expenses related to 207,000 241,000 start-up of business June 30 Operating losses for first 6 months 1,388,000