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 to Account 7370, Special Charges, 
in whole or in part, or amortized over a reasonable period through 
charges to Account 7360, Other Nonoperating Income, 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)(3) of this section.
    (3) 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.