§  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]