§ 367.1080. Account 108, Accumulated provision for depreciation of service company property.
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/us/cfr/t18/s§ 367.1080·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)This account must be credited with the following:
(1)Amounts charged to account 403, Depreciation expense (§ 367.4030), or to clearing accounts for current depreciation expense for service company property.
(2)Amounts charged to account 416, Costs and expenses of merchandising, jobbing, and contract work (§ 367.4160), or to clearing accounts for current depreciation expense.
(3)Amounts of depreciation applicable to properties acquired. (See Service Company Property Instruction in § 367.53.)
(4)Amounts of depreciation applicable to service company property donated to the service company.
(b)The service company must maintain separate subaccounts for depreciation applicable to service company property.
(c)At the time of retirement of depreciable service company property, this account must be charged with the book cost of the property retired and the cost of removal, and must be credited with the salvage value and any other amounts recovered, such as insurance.
(d)The subsidiary records for this account must reflect the current credits and debits to this account in sufficient detail to show the following separately:
(1)The amount of accrual for depreciation,
(2)The book cost of property retired,
(3)Cost of removal,
(4)Salvage, and
(5)Other items, including recoveries from insurance.
(e)The service company is restricted in its use of the accumulated provision for depreciation to the purposes identified in paragraphs
(a)through
(d)of this section. It must not transfer any portion of this account to retained earnings or make any other use of the depreciation without authorization by the Commission.