Question 39 CFAI mock morning session morning, question, interest, 2011

torontoanalyst

The answer to the question no. 39 in morning session CFA mock exam just adds up 30 million of capitalized costs to EBIT and cites option A interest cost as the answer. The interest costs are not added or subtracted in calculation of EBIT, according to it's definition.....Anyone who can help me on this ??

I think if we ignore interest cost in EBIT calculation the answer should be C....software development costs !!



Edited 1 time(s). Last edit at Thursday, June 2, 2011 at 12:39PM by rachit202.