Research and Development - THREE PART PROBLEM (30 points)

Celgene, a fast-growing pharmaceutical company, reported Research and Development Expense on the income statement of $2,400, $3,700, $4,500, and $5,900 for fiscal years 2014, 2015, 2016, and 2017, respectively.

For fiscal year 2017, Celgene also reported the following:

Part 1. If R&D had been capitalized in the year the expenditure was made and amortized over a four-year period beginning in the year after the expenditure was made, what would be the adjusted Total Assets on Celgenes balance sheet at the end of 2017?
Part 2. What would be the adjusted Net Income for Celgene at the end of 2017?

\begin{tabular}{lr} \hline Sales & $13,000 \\ Net Income & 2,900 \\ Total Assets & 30,100 \\ Common Equity & 6,900 \\ Tax Rate & 25% \\ \hline \end{tabular} \begin{tabular}{lr} \hline Sales & $13,000 \\ Net Income & 2,900 \\ Total Assets & 30,100 \\ Common Equity & 6,900 \\ Tax Rate & 25% \\ \hline \end{tabular}