Husker FinTech is a firm with significant R&D expenses. In the most recent year, the firm had $420 million in operating income, $300 million in R&D, and ended the year with $3.2 billion in book capital. You believe R&D expenses are amortizable over 5 years, and over the past 6 years they are:

Year R&D Amount

-5 $150 million

-4 $180 million

-3 $210 million

-2 $240 million

-1 $270 million

0 $300 million

For simplicity, assume expenses occur at the end of the year. Calculate a) adjusted operating income and b) adjusted book capital.