Zif Software is a firm with significant research and development expenses. In the most

recent year, the firm had $100 million in research and development expenses. R&D

expenses are amortizable over 5 years and the R& D expenses over the last 5 years are as

follows:

YearR&D expenses

-5$ 50 million

-4$ 60 million

-3$ 70 million

-2$ 80 million

-1$ 90 million

Current year $ 100 million

Assuming a linear amortization schedule (over 5 years), estimate

a. the value of the research asset.

b. the amount of R&D amortization this year.

c. the adjustment to operating income.