Sec. 663.2. Telecommunications plant acquired

(a) Property, plant and equipment acquired from an entity, whether or not affiliated with the accounting company, shall be accounted for at original cost.

(b) The accounting for property, plant and equipment to be recorded at original cost shall be as follows:

(1) The amount of money paid (or current money value of any consideration other than money exchanged) for the property (together with preliminary expenses incurred in connection with the acquisition) shall be charged to account 1439, Deferred Charges.

(2) The original cost, estimated if not known, of telecommunications plant, governmental franchises and other similar rights acquired shall be charged to applicable telecommunications plant accounts, Telecommunications Plant Under Construction, and Property Held For Future Telecommunications Use, as appropriate, and credited to account 1439. When the actual original cost cannot be determined and estimates are used, the company shall be prepared to furnish the commission with the particulars of such estimates.

(3) The amounts of the theoretical accumulated depreciation requirements for depreciation and amortization of plant acquired shall be credited to account 3100, Accumulated Depreciation, or account 3200, Accumulated Depreciation—Held for Future Telecommunications Use, 3410, Accumulated Amortization—Capitalized Leases, 3420, Accumulated Amortization—Leasehold Improvements, 3500, Accumulated Amortization—Intangible, and 3600, Accumulated Amortization-Other, and debited to account 1439.

(4) Any amount remaining in account 1439, applicable to the plant acquired, shall, upon completion of the entries provided in paragraphs (1), (2) and (3) of this subdivision, be debited or credited, as applicable, to account 2007, Goodwill, or to subaccount 2005.1, Telecommunications Plant Acquisition Adjustment, as appropriate.

(c) A memorandum record shall be kept showing the amount of contributions in aid of construction applicable to the property acquired as shown by the accounts of the previous owner.

(d) Companies shall submit to the commission for consideration and approval copies of journal entries recording acquisition of telecommunications plant covered by this instruction when the consideration paid is $100,000 or greater (Class A companies) and $25,000 or greater (Class B companies) (See section 661.1 of this Title). The text of such entries shall give a complete description of the property acquired and the basis upon which the amounts of the entries have been determined.