Sec.  32.1280   Prepayments.

   This account shall include:

   (a) The amounts of rents paid in advance of the period in which they are
   chargeable to income, except amounts chargeable to telecommunications plant
   under construction and minor amounts which may be charged directly to the
   final accounts. As the term expires for which the rents are paid, this
   account shall be credited monthly and the appropriate account charged.

   (b)  The  balance  of  all  taxes,  other  than  amounts chargeable to
   telecommunication plant under construction and minor amounts which may be
   charged to the final accounts, paid in advance and which are chargeable to
   income within one year. As the term expires for which the taxes are paid,
   this account shall be credited monthly and the appropriate account charged.

   (c) The amount of insurance premiums paid in advance of the period in which
   they   are   chargeable  to  income,  except  premiums  chargeable  to
   telecommunications plant under construction and minor amounts which may be
   charged directly to the final accounts. As the term expires for which the
   premiums  are  paid,  this  account  shall be credited monthly and the
   appropriate account charged.

   (d) The cost of preparing, printing, binding, and delivering directories and
   the cost of soliciting advertisements for directories, except minor amounts
   which  may be charged directly to Account 6622, Number services. These
   prepaid directory expenses shall be cleared to Account 6622 by monthly
   charges representing that portion of the expenses applicable to each month.

   (e) Other prepayments not included in paragraphs (a) through (d) of this
   section except for minor amounts which may be charged directly to the final
   accounts. As the term expires for which the payments apply, this account
   shall be credited monthly and the appropriate account charged.

   [ 67 FR 5682 , Feb. 6, 2002, as amended at  69 FR 53648 , Sept. 2, 2004]