90-024-7618

641

Miscellaneous income.

This account shall include all income accrued to the accounting carrier in accordance with the terms of any contract. by which the carrier is entitled to participate in the profits from the operations of others, and all nonoperating income not provided for in any of the foregoing accounts. Credits for rents receivable by the carrier for owned or leased railroad cars shall also be included in this account.

NOTE A: "Profits from the operations of others" does not include any dividends on stock. Income from dividends shall be credited to account 631-Investment dividend income, or account 632-Affiliate dividend income, as appropriate.

700

Nonoperating expenses.

710 Interest expense. 711

Investment interest expense.

(a) This account shall include all interest accrued on funded and unfunded debt, and on obligations of indebtedness of whatever kind issued, assumed, or incurred by the carrier (other than affiliated companies). This account shall not include interest on securities held by the carrier in its treasury, in sinking or other special funds, or pledged as collateral.

(b) Secondary accounts, as indicated below, shall be maintained to show separately the interest expense on each of the following:

01

Advances Interest Expense

02 Bond Interest Expense

03 Equipment Obligation Interest Expense 04 Other Long-term Obligation Interest Ex

05

pense

Current Obligation Interest Expense

712 Affiliate interest expense.

(a) This account shall include interest accrued on funded and unfunded debt, and on obligations of whatever kind issued, assured or incurred by the carrier to affiliated companies.

(b) This account shall be maintained to show separately the interest expense to each affiliated company.

720 Debt expense and credit.

721

Debt discount expense.

(a) This account shall be charged each month with the applicable proportion of the unamortized discount and expense on outstanding long-term debt.

(b) A plan of amortization shall be adopted that will result in distributing the total debt discount and expense through equal monthly charges to this account over the life of the security.

722 Debt premium credit.

(a) This account shall be credited each month with the applicable proportion of the premium at which outstanding long-term debt was issued.

(b) A plan of amortization shall be adopted that will result in distributing the debt premium through equal monthly credits to this account over the life of the security.

730 Other expenses.

731

Miscellaneous expenses.

(a) This account shall be charged with all items properly chargeable to income of the current year which have not been provided for elsewhere, including contract guarantees to be assumed by the carrier, loss reimbursements in accordance with the terms of contracts, nonoperating bad debts, intangible writeoffs, contributions that do not have a direct relationship to the protection of carrier property, development of business or welfare of the carriers; employees' fines and penalties for violations of law, and excess of premiums for life insurance of officers and employees over the increase in cash surrender value of the policies.

(b) Charges to this account shall be separated upon basis of the following secondary accounts:

800

Income taxes on income from continuing operations.

810 Income taxes on income from continuing operations.

811 Federal income taxes.

This account shall be charged each month with its proportion of Federal income taxes payable on the net annual income or profits of the carrier. (See account 930-income taxes on extraordinary items for recording other Federal income taxes).

[38 FR 21746, Aug. 13, 1973, as amended at 40 FR 53246, Nov. 17, 1975]

813 Other income taxes.

This account shall be charged each month with its proportion of income taxes (other than Federal) payable on the net annual income or profits of the carrier. (See account 930-Income taxes on extraordinary items for recording other income taxes.)

[38 FR 21746, Aug. 13, 1973, as amended at 40 FR 53246, Nov. 17, 1975]

820 Provisions for deferred taxes.

821

Provision for deferred taxes.

(a) This account shall include the tax effect of all timing differences (see definitions 41 (g) and (e)) originating and reversing in the current accounting period, and the future tax benefits of loss carryforwards recognized in accordance with instruction 1-18(c).

(b) This account shall include credits for the amortization of the investment tax credit if the carrier elected to use the deferred method of accounting for the investment tax credit. (See instruction 1-18(d).)

[39 FR 33343, Sept. 17, 1974]

850 Discontinued operations.

851

Income (loss) from operations of discontinued segments.

This account shall include the results of operations of a segment of a business (see definition 43(a)), after giving effect to income tax consequences, that has been or will be discontinued in accordance with the text of instruction 1–1, upon approval by the Commission. [40 FR 53246, Nov. 17, 1975]

852 Gain (loss) on disposal of discontinued segments.

This account shall include the gain or loss from the disposal of a segment of a

This account shall include the estimated income tax consequences (debit or credit) assignable to the aggregate of items of both taxable income and deductions from taxable income which for accounting purposes are classified as extraordinary, and are recorded in account 910, Extraordinary items (net). The tax effect of any timing differences caused by recognizing an item in the accounts provided for extraordinary items in different periods in determining accounting income and taxable income shall be included in account 940, Provision for deferred taxes-extraordinary items.

[40 FR 53246, Nov. 17, 1975]