Bajalia Company Compiled the Following Information for the Year Ending

Bajalia Company compiled the following information for the year ending December 31, 2014:
$\begin{array}{ll}\text {Research and development costs }&\$800,000 \\\text {Sales }& 6,400,000\\\text {Net income }&1,200,000 \\\text {Interest expense }&400,000 \\\text {income tax rate }& 30\%\\\end{array}$

At the end of 2014, total assets totaled $6,900,000. Bajalia's total current liabilities were $1,400,000, of which $600,000 were interest-bearing obligations. Bajalia's cost of capital is 12 percent and it amortizes intangibles over 4 years. What adjustment must Bajalia make to invested capital for accounting distortions if EVA is to be calculated for 2014?

A) $420,000
B) $600,000
C) $800,000
D) $200,000