During 2018, Oriole Company purchased a building site for its proposed research and development laboratory at a cost of $44,000. Construction of the building was started in 2018. The building was completed on December 31, 2019, at a cost of $260,000 and was placed in service on January 2, 2020. 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 (ie. 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 2020 appears below. Number of Projects 19 Salaries and Employee Benefits $86,000 Other Expenses (excluding Building Depreciation Charges) $47.000 Completed projects with long-term benefits Abandoned projects or projects that benefit the current period Projects in process-results indeterminate Total 10 9 50,000 45.000 $181.000 20,000 17,000 $84,000 38 search ORI (a) The company's income statement for 2020. Oriole Company Income Statement (Partial)