Sec.  32.2111   Land.

   (a) This account shall include the original cost of all land held in fee and
   of easements, and similar rights in land having a term of more than one year
   used for purposes other than the location of outside plant (see Accounts
   2411 through 2441) or externally mounted central office equipment (see
   Accounts 2211 and 2212). It shall also include special assessments upon land
   for the construction of public improvements.

   (b) When land, together with buildings thereon, is acquired, the original
   cost shall be fairly apportioned between the land and the buildings and
   accounted for accordingly. If the plan of acquisition contemplates the
   removal of buildings, the total cost of the land and buildings shall be
   accounted for as the cost of the land, and the salvage value of the
   buildings when disposed of shall be deducted from the cost of the land so
   determined.

   (c) Annual or more frequent payments for use of land shall be recorded in
   the rent subsidiary record category for Account 6121, Land and Building
   Expense.

   (d) When land is acquired for which there is not a definite plan for its use
   in telecommunications service, its costs shall be included in Account 2006,
   Nonoperating Plant.

   (e) When land is acquired in excess of that required for telecommunications
   purposes, the cost of such excess land shall be included in Account 2006.

   (f) Installments of assessments for public improvement, including interest,
   if any, which are deferred without option to the company shall be included
   in this account only as they become due and payable. Interest on assessments
   which are not paid when due shall be included in Account 7500, Interest and
   related items.

   (g) When land is purchased for immediate use in a construction project, its
   cost shall be included in Account 2003, Telecommunications plant under
   construction, until such time as the project involved is completed and ready
   for service.

   (h) The original cost of leaseholds, easements, rights of way, and similar
   rights in land having a term of more than one year and not includable in
   Account 2111 shall be included in the accounts for outside plant or
   externally mounted central office equipment in connection with which the
   rights were acquired.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  67 FR 5686 , Feb. 6, 2002]