We apply the adiabatic time-dependent density functional theory to magnetic circular dichroism (MCD) spectra using the real-space, real-time computational method. The standard formulas for the MCD response and its A and B terms are derived from the observables in the timedependent wave function. We find real time method is well suited for calculating the overall spectrum, particularly at higher excitation energies where individual excited states are numerous and overlapping. The MCD sum rules are derived and intepreted in the real-time formalism; we find that they are very useful for normalization purposes and assessing the accuracy of the theory.The method is applied to MCD spectrum of C 60 using the adiabatic energy functional from the local density approximation. The theory correctly predicts the signs of the A and B terms for the lowest allowed excitations. However, the magnitudes of the terms only show qualitative agreement with experiment.