A company uses EVA to reward its managers. The company spend…

A cоmpаny uses EVA tо rewаrd its mаnagers. The cоmpany spends a substantial amount of money training its employees. Although these costs are expensed for financial reporting purposes, the CEO believes that employee training should be treated as an investment because it increases performance not only in the current year but also in two subsequent years (after three years the effect of employee training wears off and has no effect on future performance). The following information is available: 2017 2016 2015 2014 Operating Income 300,000 250,000 200,000 150,000 Employee training [a] [b] [c] [d] Calculate 2017 adjusted income after capitalizing employee training costs.