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Looking at Zynga's 2011 10-K, there is an interesting accounting policy for Research and Development expenditures. Assume that instead of using the current accounting policy
Looking at Zynga's 2011 10-K, there is an interesting accounting policy for Research and Development expenditures.
Assume that instead of using the current accounting policy for research and development expenditures, Zynga instead capitalized research and development expenditures in the fiscal year in which they were incurred and then amortized them on a straight-line basis over the subsequent two fiscal years. Estimate the Income (loss) before income taxes that Zynga would have reported for the 2011 fiscal year.
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