Required:

For each of the following items, indicate where it would appear in the Statement of Operations for a private not$-$for$-$profit hospital:

Note: Leave no cells blank $-$ be certain to select $"$No effect" wherever required.

a$.$ The premium from a capitation agreement, whereby a hospital agrees to provide services to

members of an HMO for a prearranged fixed amount.

b$.$ Contractual adjustments for Medicare and Medicaid.

c$.$ Customary charges for charity care.

d$.$ Depreciation expense.

e$.$ Interest expense.

f$.$ Provision for implicit price concessions.

g$.$ Unrestricted investment income.

h$.$ Purchases of equipment.

i$.$ Bad debts.