Sec.  32.7600   Extraordinary items.

   (a)  This  account  is  intended to segregate the effects of events or
   transactions that are extraordinary. Extraordinary events and transactions
   are distinguished by both their unusual nature and by the infrequency of
   their occurrence, taking into account the environment in which the company
   operates. This account shall also include the related income tax effect of
   the extraordinary items.

   (b)  This  account  shall  be credited and/or charged with nontypical,
   noncustomary and infrequently recurring gains and/or losses which would
   significantly  distort  the current year's income computed before such
   extraordinary items, if reported other than as extraordinary items.

   (c) This account shall be charged or credited and Account 4070, Income
   taxes—accrued, shall be credited or charged for all current income tax
   effects (Federal, state and local) of extraordinary items.

   (d) This account shall also be charged or credited, as appropriate, with a
   contra amount recorded to Account 4350, Net noncurrent deferred nonoperating
   income taxes or Account 4110, Net current deferred nonoperating income taxes
   for the income tax effects (Federal, state and local) of extraordinary items
   that have been deferred in accordance with  Sec. 32.22.

   [ 67 FR 5700 , Feb. 6, 2002]