CFAI Mock PM Q60 liability, captures, 2010, interest

fishmarket

about why someone prefers RI approach..The answer is B, but i can't think of why A and C are wrong.

When i was doing 2010 mock, it says off-balance sheet items do not affect the amount of equity since off-balance sheet asset and off-balance sheet liability offset each other.

So why A is wrong?

Choice C, doesn't the interest expense in RI model correctly captures the cost of debt?

Choice B, i don't get the answer, what does 'non-recurring items do not need to be made to the book value because they are already reflected in the value of the assets' mean?

Thanks a lot!!