Below is information for year ended 12/31/15 for Company A and Company B.

	Company A	Company B
Interest expense	$ 400	$ 0
Tax expense (40%)	400	400
Net income	600	600
Total assets	10,000	10,000
Total debt	5,000	0
Equity	5,000	10,000

Company A capitalized $100 in interest costs, the pension obligation, during the year. Times interest earned ratio, after necessary adjustments, for Company A is:

Group of answer choices

2.8

1.2

3.5

2.0