I was doing a mock today and i got wrong a question which asked what caused EBIT to increase the most.
Capitalized Interest of 30M
Software Development cost of 4.5M
Deferred Revenue of some amount.
They answer was Capitalized interest, but i thought capitalized interest will dercrease EBIT because of the Depreciation Expense not increase it. Also since interest is below EBIT it should not affect it. If you remove the Capitalized interest effect on Depreciation it should increase EBIT.
Any help is aprreciated