During 2012, Robin Wright Tool Company purchased a building site for its proposed research and development laboratory at a cost of $64,210. Construction of the building was started in 2012. The building was completed on December 31, 2013, at a cost of $323,700 and was placed in service on January 2, 2014. The estimated useful life of the building for depreciation purposes was 20 years. The straight-line method of depreciation was to be employed, and there was no estimated residual value. Management estimates that about 50% of the projects of the research and development group will result in long-term benefits (i.e., at least 10 years) to the corporation. The remaining projects either benefit the current period or are abandoned before completion. A summary of the number of projects and the direct costs incurred in conjunction with the research and development activities for 2014 appears below.

		Number of Projects		Salaries and Employee Benefits		Other Expenses (excluding Building Depreciation Charges)
Completed projects with long-term benefits		14		$92,520		$53,160
Abandoned projects or projects that
benefit the current period		10		67,770		19,010
Projects in process