Correct me if I’m wrong but I’m pretty sure capitalized costs related to inventory get to stay in CFO (unlike capitalized costs related to PPE which go to CFI).
If this is the case, then why does Q16 in the 2013 Sample Exam Part 1 say that capitalized discounts on sales of handsets will increase CFO?? The capitalized costs are still related to operations because handsets are an inventory item. Shouldn’t CFO should stay the same?