The purpose of this account is to exclude from the current assets the cost of supplies and unapplied material which are located for use on projected new roads and road extensions, under the condition that the material will not be used for other purposes.** NOTE A: Material and supplies designed for projected new roads and road extensions which are carried in storehouses and store yards and included in the general stock of an operating company shall be included in balance-sheet account No. 716, “Materials and supplies.” NOTE B: The cost of unapplied materials and supplies on hand at the completion of construction work shall be transferred to balance-sheet account No. 716, "Materials and supplies." II. EQUIPMENT The several primary accounts included in this general account are designed to show the cost of the several classes of equipment owned by the carrier, or held under equipment trust agreements for purchase. To the appropriate primary accounts in this general account shall be charged the cost of all equipment, such as steam locomotives, electric locomotives, passenger-train cars, freight-train cars, work equipment, floating equipment, and the necessary appurtenances, furniture, and fixtures first to equip for service, including the cost of inspection, setting up, and trying out, and transportation over foreign lines; also the cost of additions, such as headlights, mechanical stokers, power brakes, vestibules, machinery for self-propulsion, heating and lighting apparatus, and the like; and the excess cost of betterments, such as improved appliances, parts, or appurtenances, over the cost at current prices (as new) of the appliances, parts or appurtenances removed. The cost of removing the old appliances and applying the improved shall be charged to Operating Expenses. The ledger value of each unit of equipment shall be credited to the appropriate equipment account when it is permanently retired from service. (See note A which follows.) The service value (see note B which follows) of the unit shall be charged to account 776, "Accrued depreciation-Equipment.” The value of the salvage (see note C which follows) from the unit shall be charged to account 716, "Material and supplies," or to other account appropriate according to the disposition thereof. In case the retired equipment is held without being torn down, the estimated value of the salvage therefrom shall be included in account 722, "Other deferred assets," until the salvage is recovered. The cost of tearing down the retired unit and recovering the salvage shall be charged to account 329, "Equipment-Retirements." The ledger value (estimated if not known) of all parts of equipment retired and not replaced shall be credited to the property investment account and the service value thereof charged to account 776, "Accrued depreciation— Equipment." NOTE A: The term "retired from service" as applied to equipment means equipment which has been permanently withdrawn from transportation service. The dismantling or tearing down of a unit of equipment in order to replace parts thereof with improved parts, the purpose of which is to modernize the unit and to create an expectation of life fairly comparable with new and modern equipment shall be accounted as a retirement. The dismantling or stripping of such property only to the extent necessary to recondition or to replace in kind defective parts shall be accounted as repairs. NOTE B: The term "service value" as applied to equipment means the ledger value thereof less the value of the salvage therefrom. NOTE C: The term "value of salvage" means the amount received for property retired, or for the material salvaged therefrom, if sold; or if retained, the value at which the property or the material salvaged therefrom is chargeable to account 716, "Material and supplies," or other account of this system of accounts. *For statutory citation, see note to § 10.00-1. Page 93 1 The following list of units of equipment is prescribed for the purpose of designating items of equipment, the ledger value of which shall be credited to the property investment account at the time of retirement: 51. Steam Locomotives. A complete locomotive. A locomotive, exclusive of tender. A tender. A locomotive booster. 52. Other Locomotives. A complete locomotive. A complete motor equipment. A propulsion motor. A generator for propulsion power. 53. Freight-Train Cars. A complete car. A complete motor equipment. A propulsion motor. A generator for propulsion power. 54. Passenger-Train Cars. A complete car. The complete interior furnishings of a coach, buffet, café, chair, club, dining, library, observation, sleeping or other passenger-train car. A complete motor equipment. A propulsion motor. A generator for propulsion power. 56. Floating Equipment. A complete vessel or boat. (5) Machinery equipment (with or without tractive machinery) such as concrete mixer, snow plow, derrick, steam shovel, or pile driver. (6) A complete motor equipment. (7) A generator for propulsion power. (b) Floating equipment-Work: (1) A complete vessel or boat. (2) A boiler. (3) A steam engine. (4) A motor. (5) An electric generator. 58. Miscellaneous Equipment. A horse. A wagon. A freight container, complete. An automobile vehicle. When equipment of one class is converted so as to be includible in another class, the accounting shall be as provided in § 10.01–11. When an important addition and betterment project or the construction of new lines necessitates the purchase of equipment to be used exclusively therein, the cost of such equipment shall be included in the accounts representing the cost of the work, and no charge shall be made to Operating Expenses for depreciation on such equipment while the cost remains so charged. The amount realized from any subsequent sale, or the appraised value of the equipment retained after the completion of the special work for which it was purchased, shall be credited to the accounts charged with its cost. The appraised value Page 94 of such equipment retained shall be debited to the appropriate primary account herein, and thereafter, for the purposes of accounting, such appraised value shall be considered as the cost of the equipment. When secondhand equipment acquired is in such physical condition that it is necessary to make extensive repairs to it to bring it up to the standard required by the carrier, the cost of such repairs shall be included in the account appropriate for the cost of the equipment. A comprehensive statement of the amount estimated to be necessary to rebuild secondhand equipment in accordance with the above provision shall be furnished to the Commission as soon as the estimate is made. [As amended July 25, 1925, June 13, 1934] 10.51 Steam locomotives. This account shall include the cost of steam locomotives and tenders, purchased or built by the carrier, and of appurtenances, furniture, and fixtures necessary to equip them for service, including the cost of inspection, setting up, and trying out after receipt from builders, and transportation charges to the carrier's line. 10.52 Other locomotives. This account shall include the cost of locomotives other than steam, purchased or built by the carrier, and of appurtenances, furniture, and fixtures necessary to equip them for service, including inspection, setting up, and trying out after receipt from builders, and transportation charges to the carrier's line.** NOTE: Cars with motor equipment are not to be classed as locomotives. 10.53 Freight-train cars. This account shall include the cost of freight-train cars of all classes, including motor-driven cars, purchased or built by the carrier, including all appurtenances, furniture, and fixtures necessary to equip them for service, and the cost of inspection and transportation charges to the carrier's line. 10.54 Passenger-train cars. This account shall include the cost of passenger-train cars of all classes, including motor-driven cars, purchased or built by the carrier, including all appurtenances, furniture, and fixtures necessary to equip them for service, and cost of inspection and transportation charges to the carrier's line. 10.56 Floating equipment. This account shall include the cost of marine or floating equipment of all kinds except work equipment, purchased or built by the carrier, including all appurtenances, furniture, and fixtures necessary to equip it for service, and cost of inspection and transportation charges to the carrier's line. Page 96 *For statutory citation, see note to § 10.00-1. LIST OF APPURTENANCES TO FLOATING EQUIPMENT (See § 10.01-13.) Anchors. Barometers. Beds and bedding. Blocks and tackle. Boilers and foundations. Cables. Capstan bars. Carpets. Charts. Flue cleaners. Furniture. Gangplanks. Hatchets. Heating equipment. Hoisting equipment. Keys. Kitchen equipment. Life preservers. China, crockery, and Linen. glassware. Lines. Logs. Railings. Rakes. Sails. Seats, chairs, and cush- Slice bars and pokers. Steam distribution sys- Steering equipment. Machinery and founda- Telescopes. Chronometers. Clocks. Compasses. tions. Ticket cases. Tool boxes. Tools, miscellaneous. Pianos and other musical Tracks on car floats. instruments. Pumps. Ventilating equipment. 10.57 Work equipment. This account shall include the cost of work equipment, including motor-driven equipment, purchased or built by the carrier; cost of appurtenances, furniture, and fixtures necessary to equip it for service, and cost of inspection and transportation charges to the carrier's line. |