How should a registrant account for a fee received for installation of an additional telephone jack in the following situation?
Facts: Assume the registrant is a provider of wireline telecommunications services. To install a phone jack for a customer, the registrant must dispatch a field technician to a customer’s residence. This service may be performed at the same time as activation of phone service or at a different time. The registrant charges the customer $65 to install the additional phone jack. The costs of performing this service are $55 and consist primarily of the field technician’s hourly wage, related benefits, materials (e.g., jack and wiring) and transportation costs (e.g., gas). Although rare, the registrant does provide this installation service in situations where it is not also providing basic local service. In addition, customers could choose other vendors to install the additional phone jack in their residence or they could do it themselves.
