a pharmaceutical company spends $9m, $12m and $6m on research and development in 2018, 2019, 2020, respectively. assume that these R&D expenditure were inappropriately capitalised and amortised over the next3 years, beginning in the year after they were recognised. which of the following items is understated for the 2020 fiscal year?

a) total expense

b) retained earning

c) total asset

d) net income