§  32.2005   Telecommunications plant adjustment.

   (a) This account shall include amounts determined in accordance with
   § 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]