*Problem 12-6 During 2015, Sheridan Company purchased a building site for its proposed research and development laboratory at a cost of $50,000. Construction of the building was started in 2015. The building was completed on December 31, 2016, at a cost of $360,000 and was placed in service on January 2, 2017. 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 esearch and development group will esult 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 2017 appears below. Number of Projects Salaries and Employee Benefits Other Expenses (excluding Building Depreciation Charges) Completed projects with long-term benefits Abandoned projects or projects that $90,000 $51,000 benefit the current period Projects in process-results indeterminate Total 51,000 39,000 $180,000 17,000 14,000 $82,000 40 Upon recommendation of the research and development group, Sheridan Company acquired a patent for manufacturing rights at a cost of $116,000. The patent was acquired on April 1, 2016, and has an economic life of 10 years If generally accepted accounting principles were followed, how would the items above relating to research and development activities be reported on the following financal statements? Your answer is partially correct. Try again. The company's income statement for 2017. (Do not round intermediate calculations and round final answer to 0 decimal places, e.g. 5,275.) Sheridan Company Income Statement (Partial) rch and t Expen tization of Paten Your answer is partially correct. Try again. The company's balance sheet as of December 31, 2017. (Do not round intermediate calculations and round final answer to O decimal places, e.g. 5,275.) Sheridan Company alance Sheet (Partial) December 31. 201 uilding-Ner tent-Ne