Sec.  32.2005   Telecommunications plant adjustment.

   (a) This account shall include amounts determined in accordance with
    Sec. 32.2000(b) of this subpart representing the difference between (1) the fair
   market value of the telecommunications plant acquired, plus preliminary
   expenses incurred in connection with the acquisition; and (2) the original
   cost of such plant, governmental franchises and similar rights acquired,
   less the amounts of reserve requirements for depreciation and amortization
   of the property acquired. If the actual original cost is not known, the
   entries in this account shall be based upon an estimate of such costs.

   (b) The amounts recorded in this account with respect to each property
   acquisition (except land and artworks) shall be disposed of, written off, or
   provision shall be made for the amortization thereof, as follows:

   (1) Debit amounts may be charged in whole or in part, or amortized over a
   reasonable period through charges to Account 7300, Nonoperating income and
   expense, without further direction or approval by this Commission. When
   specifically approved by this Commission, or when the provisions of
   paragraph (b)(3) of this section apply, debit amounts shall be amortized to
   Account 6565, Amortization expense—other.

   (2) Credit amounts shall be disposed of in such manner as this Commission
   may approve or direct, except for credit amounts referred to in paragraph
   (b)(4) of this section.

   (3) The amortization associated with the costs recorded in the
   Telecommunications plant adjustment account will be charged or credited, as
   appropriate, directly to this asset account, leaving a balance representing
   the unamortized cost.

   (4) Within one year from the date of inclusion in this account of a debit or
   credit amount with respect to a current acquisition, the company may dispose
   of the total amount from an acquisition of telephone plant by a lump-sum
   charge or credit, as appropriate, to Account 6565 without further approval
   of this Commission, provided that such amount does not exceed $100,000 and
   that the plant was not acquired from an affiliated company.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  67 FR 5685 , Feb. 6, 2002;  69 FR 53648 , Sept. 2, 2004]