for depreciation;

wire-telegraph and ocean-cable plant," with the cost of the plant transferred. Account 1515 shall then be credited and account 1610, "Miscellaneous physical property," shall be charged with the estimated fair value, not in excess of cost, of the plant transferred. Any balance in the depreciation-allowance account relating to such transferred property shall be disposed of as provided in paragraph (1) of § 35.1-6, § 35.03-13, or paragraph (c) of § 35.04-2, as appropriate.

§ 35.1-8

Continuous property-record required. (a) Not later than January 1, 1943, each carrier shall begin the preparation of a continuous property record relating to property of the classes represented in the balance-sheet accounts under the caption "Communication plant," and in account 1610, "Miscellaneous physical property." The record shall be completed not later than June 30, 1946, with respect to property as at December 31, 1942, and with respect to the changes effected therein between the dates of January 1, 1943, and December 31, 1945: Provided, however, That such data shall not be used by the carrier in its permanent records until the approval by the Commission of a plan (and a list of property units) and other details of a continuous property-record procedure to be submitted in compliance with the provisions of paragraph (b) of this section.

(b) Not later than June 30, 1943, each carrier shall submit to the Commission, for consideration and approval, a complete plan of methods to be used in the compilation of the continuous propertyrecord, the installation and maintenance of which are prescribed in paragraph (a) of this section. The plan shall include a list of the property units proposed for use, classified to conform with the operated plant accounts prescribed in this system of accounts, and shall include material lists for assemblies, together with the quantity-unit designation applicable to each property unit and to the integral or associated parts thereof. A narrative statement shall accompany the lists of proposed units, describing in detail the content and method of maintenance of all forms and other records which are designed for use in compiling the continuous property-record, to the end that a ready analysis with respect to the sufficiency thereof may be made.

(c) The record shall be arranged in conformity with the operated plant accounts prescribed in this system of accounts. It shall be compiled on the basis of original cost and shall contain such detailed description and classification of the property units as will permit ready verification.

§ 35.1-99 Contemplated form of plant statement. (See § 35.03-9.)

Ito, inclusive: The accounts represented, if appropriate, at the 8 respective points bearing these symbols shall be numbered, for example, T-1011, T-1112, T-1213. T-1414 C-1024, C-1125, C-1226, and C-1431, respectively.

PRESCRIBED ACCOUNTS

NOTE: Number to the right of the decimal point is the account number.

Real Estate

§ 35.11 Land used for right of way. This account shall include the cost of land used in wire-telegraph and oceancable services for the location of poles, towers, wires, cables, conduits, cable huts, cable houses, and similar operated plant where title to the land is vested in the accounting carrier. (See also §§ 35.84 and 35.4150.)

NOTE: When land is acquired in excess of that required for wire-telegraph and ocean-cable services or is acquired without a definite plan for its use in such services, its cost shall be included in account 1610, "Miscellaneous physical property," except that the cost of land acquired for use in telephone or radiotelegraph services shall be included in account 1530, "Telephone and radiotelegraph plant."

ITEMS

(See § 35.03-12)

Assessments for the construction of public improvements.

Clearing or defending title against claims relating to a period prior to the date of purchase.

Commissions and fees to brokers, agents, and others.

Condemnation proceedings, including court
costs and special counsel fees.
Conveyancer and notarial fees.

Examination and registration of titles.
Payments to vendors.

Relocating property of others in the acquisition of land.

Taxes assumed on land, applicable to a period prior to the date of acquisition. Voiding leases to secure possession of land acquired.

§ 35.12 Land used for building sites. (a) This account shall include the cost of land occupied by buildings used in wire-telegraph and ocean-cable services where title to the land is vested in the accounting carrier. (See particularly §§ 35.84 and 35.4150; also the note and the list of items in § 35.11.)

(b) When improved land is acquired the cost shall be fairly apportioned among the accounts appropriate for the land, the land improvements, and the buildings. If the plan of acquisition contemplates the removal of any improvements (including buildings), the total cost of the land and the property to be removed shall be accounted for as the cost of the land, and the net salvage value

of the property removed shall be deducted from the cost of the land.

§ 35.13 Land used for other operations. (a) This account shall include the cost of land used in wire-telegraph and ocean-cable services for material, equipment, and other storage yards and for other purposes (except right-of-way and building sites) where title to the land is vested in the accounting carrier. (See particularly §§ 35.84 and 35.4150; also the note and the list of items in § 35.11.)

(b) When improved land is acquired the cost shall be fairly apportioned among the accounts appropriate for the land, the land improvements, and the buildings. If the plan of acquisition contemplates the removal of any improvements (including buildings), the total cost of the land and the property to be removed shall be accounted for as the cost of the land and the net salvage value of the property removed shall be deducted from the cost of the land.

§ 35.14 Land improvements. This account shall include the cost of improvements (except buildings) made or acquired by the carrier on land used in wire-telegraph and ocean-cable services where title to such improvements is vested in the accounting carrier. (See particularly § 35.1-5; also §§ 35.11, 35.12, 35.13, and 35.15.)

Swimming pools, outdoor.
Tennis courts.
Trees.

Yard-lighting equipment.

§ 35.15 Buildings. (a) This account shall include the cost of buildings used in wire-telegraph and ocean-cable services (except cable huts or cable houses), including all fixtures permanently attached to and made a part of buildings and which cannot be removed therefrom without cutting into the walls, ceilings, or floors, or without in some way impairing the buildings.

(b) Amounts includible in this account shall include the cost of the building foundations and structures, costs