Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.2-7 2–7 [1201.2–7] Additions to and retirements of property—General

(a) In accounting for additions to and retirements and replacements of road and equipment property (excluding land) used in transportation operations, such property changes shall be considered as consisting of:  (1) Units of property, and (2) other than units of property as prescribed in Instruction 2–19. Track property changes will be distinguished by units of property as approved by the Commission.

(b) The cost of removal of retired property, both depreciable and other than depreciable, when borne by the carrier, shall be charged, as appropriate, to account 11–13–39, Personnel—Salaries and Wages—Way and Structures—Other—Dismantling retired property, or 11–23–39. Personnel—Salaries and Wages—Equipment—Other Equipment—Dismantling retired property, and other appropriate accounts (including subactivities 11 and 12). 1

(c) An equitable proportion of a balance in property accounts 76, Interest During Construction, and 80, Other elements of investment, applicable to retired property shall be cleared from these accounts concurrently with the retirement accounting. Unless provided for otherwise, interest costs shall be capitalized in accordance with generally accepted accounting principles.

(d) When retired property is held and not removed, the estimated value of the salvage therefrom shall be included in account 741, Other assets, until the salvage is recovered, except that the estimated scrap value of retired property held for sale in the ordinary course of business, and on which sale and realization of the proceeds within one year is assured, is includible in account 713, Other current assets.

(e) The accounting for track additions and retirements (with and without replacement) shall be guided by Instruction 2–10.