NNH&V Cable TV operates cable TV systems in larger cities in the northern two-thirds of New Hamp-
Question:
NNH&V Cable TV operates cable TV systems in larger cities in the northern two-thirds of New Hamp- shire and Vermont. The franchise agreement with the cities requires an annual reporting to each city council of operating profit in that city. Thirty-three company expense categories, such as cable system repairs, re- pair truck depreciation, truck repairs, truck operating cost, as well as repair personnel costs, must be allo- cated to city-level income statements based on pop- ulation calculated to a percentage that includes one decimal place. Cities currently served by NNH&V and their populations are: Berlin, NH 13,084 8,939 Conway, NH Hanover, VT 15,980 Laconia, NH 15.575 Lebanon, VT 11,134 Depreciation on the repair trucks is $8,000 per month. To record the monthly depreciation, five accounts are debited and a single credit is made to Accumulated Depreciation-Trucks.
Required: a. Calculate the amount of depreciation to be al- located to the respective city-level income statements.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr