Inter Corporate Investments - Reading 13

CFA Level II FRA
#1

R 13 EOC Question Number 14

Compared to Confabulated’s reported earnings before taxes in 2018, if Dumas had been classified as a FVPL security, the earnings before taxes (in € thousands) would have been:
A the same.
B €1,000 lower.
C €3,000 higher.

Can anybody please explain how answer to this C?

#2

See CFA Level 2 Errata: https://www.cfainstitute.org/-/media/documents/support/programs/cfa/cfa-level-ii-errata.ashx

Correction:
“In question 14 (page 51 of print), answer choice C should be €1,000 higher (not €3,000 higher).”

#3

Thank you!

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