the answer is 3.5, please show the calculation in detail.

37. Company A capitalized $100 in interest costs, the pension obligation, during the year. Times interest earned ratio, after necessary adjustments, for Company A is: Below is information for year ended 12/31/05 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 - 12/31/05 10,000 10,000 Total debt 5,000 0 Equity 5,000 10,000