During 2023, Oak Company purchased a building site for its proposed research and development laboratory at a cost of $125,000. Construction of the building was started in 2023. The building was completed on December 31, 2024, at a cost of $750,000 and was placed in service on January 2, 2025. The estimated useful life of the building for depreciation purposes was 25 years. The straight-line method of depreciation was to be employed, and there was no estimated salvage value. Management estimates that about 40% 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 2025 below. Upon recommendation of the research and development group, Oak Company acquired a patent for manufacturing rights at a cost of $180,000. The patent was acquired on April 1, 2024, and has an economic life of 8 years. Instructions If generally accepted accounting principles were followed, how would the items above activities be reported on the following financial statements? Number of Projects Salaries and Employee Benefits Other Expenses (excluding Building Depreciation Charges) Completed projects with long-term benefits 10 $ 83,000 $ 60,000 Abandoned projects or projects that benefit the current period 16 135,000 67,000 Projects in processresults indeterminate 8 64,000 26,000 Total 34 $282,000 $153,000 a. The companys income statement for 2025. b. The companys balance sheet as of December 31, 2025. Be sure to give account titles and amounts, and briefly justify your presentation.