Zif Software is a firm with significant research and development expenses. In the most recent year, the firm had $100 million in R&D expenses. R&D expenses are amortizable over five years, and over the past five years they are:

Assuming a linear amortization schedule (over five years), estimate:

a. The value of the research asset.

b. The amount of R&D amortization this year.

c. The adjustment to operating income.

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Year R&D Expenses -5 $ 50 million -4 $ 60 million -3 $ 70 million -2 $ 80 million -1 $ 90 million Current year $100 million