Sec. 664.2. Depreciation charges

(a) A separate annual percentage rate for each depreciation category of telecommunications plant shall be used in computing depreciation charges.

(b) Charges for currently accruing depreciation shall be made monthly to the appropriate depreciation accounts, and corresponding credits shall be made to the appropriate depreciation reserve accounts. Current monthly charges shall normally be computed by the application of one-twelfth of the annual depreciation rate to the monthly average balance of the associated category of plant. The average monthly balance shall be computed using the balance as of the first and last days of the current month.

(c) When acquired depreciable plant carried in account 1439, Deferred Charges, is distributed to the appropriate plant accounts, adjusting entries shall be made covering the depreciation charges applicable to such plant for the period during which it was carried in account 1439.

(d) When the company is responsible under the terms of a lease for depreciation of property, used but not owned, the computation of depreciation charges shall be made on the same basis as for owned depreciable property.