This account shall include State, county, township, city, school, road, annual franchise, and all other taxes and assessments levied and paid on property belonging to the carrier during construction and before the facilities are used for commercial operations, except special assessments for street and other improvements chargeable to Account 36, "Paving," or 39, "Assessments for public improvements."

NOTE: Taxes during construction, when assignable, shall be included in the cost of the property acquired or constructed.

§ 103.76 Interest during construction.

(a) When any bonds, notes, or other evidences of indebtedness are sold, or any interst-bearing debt is incurred for acquisition and construction of original road and equipment, extensions, additions, and betterments, the interest accruing on the part of the debt representing the cost of property chargeable to road and equipment accounts (less interest, if any, allowed by depositaries on unexpended balances) after such funds become available for use and before the receipt or the completion or coming into service of the property so acquired shall be charged to this account.

(b) When such securities are sold at a premium the proportion of such premium assignable to the time between the date of the actual issuance of the securities and the time when the property acquired or the improvement made becomes available for service shall be credited to this account.

(c) This account shall also include such proportion of the discount and expense on funded debt issued for the acquisition of original road, original equipment, road extensions, additions, and betterments, as is equitably assignable to the period between the date of the actual issuance of securities and the time when the property acquired or the improvement made becomes available for the service for which it is intended. The proportion of discount and expense thus chargeable shall be determined by the ratio between the period prior to the completion or coming into service of the facilties or improvements acquired and the period of the entire life of the securities issued.

(d) This account shall also include reasonable charges for interest, during the construction period before the prop

erty becomes available for service, on the carrier's own funds expended for construction purposes.

NOTE A: Interest on bonds, notes, or other evidences of indebtedness accruing before the proceeds from the sale of the securities become available for use shall not be included in this account, nor shall there be included any interest accruing after the property with respect to which the proceeds are expended is received or becomes available for use in connection with commerical service.

NOTE B: If any securities which have been issued or assumed by the carrier are sold or exchanged by or for the carrier for a consideration the actual money value of which at the time of such sale or exchange is less than the value of the securities at par and the accrued interest thereon, if any, the difference between the money value of the consideration received and the par value of the securities plus the accrued interest shall be deemed a discount. In no case (except as provided in the third and fourth paragraphs of this account) shall discounts be included as part of the cost of anything charged to any account prescribed in this classification.

NOTE C: For definition of securities actually issued, see Note B, under General Balance-sheet Account 755, "Funded debt unmatured."

NOTE D: Whenever interest, premium, or discount assignable to the construction period is incurred in connection with an expenditure covered by some specific road and equipment account or accounts, such interest, premium, or discount shall be charged directly to the specific accounts to which it is related.

§ 103.77 Other expenditures—general,

This account shall include all expenditures of a special and incidental nature in connection with the acquisition and construction or original road and equipment, road extensions, additions, and betterments which cannot properly be included in any other account in this classification.

PART 104-UNIFORM SYSTEM OF ACCOUNTS FOR CLASS C PUBLIC UTILITIES AND LICENSEES

AUTHORITY: The provisions of this Part 104 issued under secs. 3(13), 4(b), 41 Stat. 1063, 1065, as amended, secs. 301, 304(a), 308, 309, 49 Stat. 854, 855, 858; 16 U.S.C. 796(13), 797(b), 825, 825c (a), 825g, 825h.

SOURCE: The provisions of this Part 104 contained in Order 225, 25 F.R. 12764, Dec. 13, 1960, as amended by Order 276, 28 F.R. 14267, Dec. 25, 1963; Order 290, 29 F.R. 18215, Dec. 23, 1964; Order 318, 31 F.R. 3391, Mar. 24, 1966; Order 366, 33 F.R. 10135, July 16, 1968.