Consider Apples R&D expenditure. Assume that instead of using its current accounting policy for research and development costs, Apple instead capitalized these costs in the fiscal year the costs are incurred and then amortized 30% of the costs in the next fiscal year (t+1) and the other 70% in the year after (t+2). Estimate the Operating income that Apple would have reported for the 2020 fiscal year.

Analyzing Apple 2020 September 26, 2020 Years ended September 28, 2019 September 29, 2018 $ Net sales: Products Services Total net sales 220,747 $ 53,768 274,515 213,883 $ 46,291 260, 174 225,847 39,748 265,595 Cost of sales: Products Services Total cost of sales Gross margin 151,286 18,273 169,559 104,956 144,996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 Operating expenses: Research and development Selling, general and administrative Total operating expenses 18,752 19,916 38,668 16,217 18,245 34,462 14,236 16,705 30,941 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 66.288 803 67,091 9,680 57,411 63,930 1,807 65,737 10,481 55,256 $ 70,898 2,005 72,903 13,372 59,531