Microsoft and Oracle both develop and sell software. Assume that each firm spends $10 million on R&D each year starting in 2020. Microsoft expenses all R&D whereas Oracle expenses 50% and Capitalizes 50%. The Capitalized R&D is expensed equally over the next two years. Which of the following is true:

a. Microsoft will report greater R&D expense than oracle every year in the future.

b. Oracle will report greater R&D expense than Microsoft in 2021

c. Microsoft will report lower R&D expense in 2021

d. Both firms will report the same R&D expense in 2021

e. Both firms will report the same R&D expense in 2022

Additional instructions from the student:

please also explain why. thanks