Just write NM a check

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Associated Press, a powerful New Mexico regulatory authority is requiring the state’s largest utility to bill Facebook $39 million for a new transmission line construction for its data center — a move the social media giant says it was not expecting.

Questions:

  1. What is the total cost for the transmission project for Facebook?
  2. What was Facebook’s response to this move by the New Mexico regulatory authority?
  3. Is this Facebook’s only data center?
  4. The contract in New Mexico was part of what type of initiative?

Source:

AP Staff. (2019). New Mexico panel surprises Facebook with $39M utility bill. Associated Press, April 18 (Retrievable online at https://apnews.com/d9396a5f9b9d4b5fa6383fbdd68f37cf )