FairPoint Communications 2004 Annual Report Download - page 549

ILLINOIS VALLEY CELLULAR RSA 2-III PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION
The Illinois Valley Cellular RSA 2-III Partnership (Partnership) is organized pursuant to the provisions of the Illinois Uniform
Partnership Act. The Partnership was formed on November 6, 1989, to fund, establish, and provide cellular service within a portion of the
Illinois RSA 2 Cellular Geographic Service Area. At December 31, 2002, 2001, and 2000, the general partners and their respective
ownership percentages in the Partnership were as follows:
Partner Percentage
Illinois SMSA Limited Partnership 20.00%
Chicago SMSA Limited Partnership 20.00%
CENCOMM, Inc. 6-2/3
C-R Cellular, Inc. 6-2/3
DePue Communications, Inc. 6-2/3
Gemcell, Inc. 6-2/3
Gridley Cellular, Inc. 6-2/3
Leonore Cellular, Inc. 6-2/3
Marscilles Cellular, Inc. 6-2/3
McNabb Cellular, Inc. 6-2/3
Tonica Cellular, Inc. 6-2/3
100.00%
Marscilles Cellular, Inc. (MC) was elected by the Partnership to serve as the operating and network partner of the Partnership.
The partners make capital contributions, share in the operating results, and receive distributions from the Partnership in accordance
with their respective ownership percentages.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accounting policies of the Partnership conform to accounting principles generally accepted in the United States of America.
Management uses estimates and assumptions in preparing its financial statements. Those estimates and assumptions affect the reported
amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from
those estimates.
Property and Equipment
The Partnership's property and equipment is stated at cost, including labor and overheads associated with construction and capitalized
interest.
Depreciation is computed by applying the straight-line method. The estimated service lives for depreciable plant and equipment are: 15
years for buildings; 7 to 15 years for cell site towers; 7 to 10 years for electronic mobile exchange and base site controller equipment; 7 years
for furniture and fixtures; and 5 years for computer equipment.
When depreciable properties are sold, or otherwise disposed of, any resulting gains or losses are included in the determination of
income.