- 30 -
Includes such assets as pole lines, cable, aerial wire,
underground conduits and comparable equipment, and
related land improvements as defined in Federal
Communications Commission Part 31 Account Nos. 241,
242.1, 242.2, 242.3, 242.4, 243, and 244 . . . . . . . . . 28 35 42
See also Rev. Proc. 83-35, 1983-1 C.B. 745.3 Under the
regulations promulgated by the FCC for class A and class B
telephone companies,4 as of January 1, 1981, FCC account No. 232
included the original cost of drop and block wires. 47 C.F.R.
sec. 31.232 (1980). Pursuant to Rev. Proc. 77-10, supra, FCC
account No. 232 has an asset guideline period of 10 years, making
it 5-year property under section 168(c)(2)(B), while property in
FCC account No. 242 has an asset guideline period of 35 years,
making it 15-year public utility property under section
168(c)(2)(E). The parties agree that prior to 1984, drop and
block was properly included in FCC account No. 232 and, thus, was
5-year property. In 1984, the FCC regulations were amended so
3 Rev. Proc. 83-35, 1983-1 C.B. 745, was meant to replace,
with certain modifications, preceding revenue procedures,
including Rev. Proc. 77-10, 1977-1 C.B. 548, that prescribed
asset guideline classes, asset guideline depreciation periods,
and ranges for the class life asset depreciation range system.
This revenue procedure leaves intact the assets included and the
depreciation range for asset guideline classes 48.13 and 48.14.
4 Companies having annual operating revenues exceeding
$250,000 are class A telephone companies; Sprint is a class A
company.
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