11 ) Prepare the journal entry ( if any ) to record the impairment of the asset at December 31 , 2014 . The company does not use accumulated amortization accounts .
12 ) Prepare the journal entry to record amortization expense for 2015 related to the copyrights .
13 ) The fair value of the copyright at December 31 , 2015 , is $ 3 , 20,000 . Prepare journal entry ( if any ) necessary to record the increase in fair value .
14 ) During 2012 , Robin Wright Tool Company purchased a building site for its proposed research and development laboratory at a cost of $ 60,000 . Construction of the building was started in 2012 . The building was completed on December 31 , 2013 , at a cost of $ 320,000 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 and the direct costs incurred in conjunction with the research and development activities for 2014 appears below . Upon recommendation of the research and development group , Robin Wright Tool Company acquired a patent for manufacturing rights at a cost of $ 88,000 . The patent was acquired on April 1 , 2013 , and has an economic life 10 years . If generally accepted accounting principles were followed , how would the item above relating to research and development activities be reported on the following financial statements ?