§  32.2682   Leasehold improvements.

   (a) This account shall include the original cost of leasehold
   improvements made to telecommunications plant held under a capital or
   operating lease, which are subject to amortization treatment. This
   account shall also include those improvements which will revert to the
   lessor.

   (b) Improvements to leased telecommunications plant which are of a
   relatively minor cost or short life or for which the period of the
   lease is one year or less shall be charged to the account chargeable
   with the cost of repairs to such plant.

   (c) Amounts contained in this account shall be amortized over the term
   of the related lease. For Class A companies, except mid-sized incumbent
   local exchange carriers, the amortization associated with the costs
   recorded in the Leasehold improvement account will be credited directly
   to this asset account, leaving a balance representing the unamortized
   cost.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  67 FR 5687 , Feb. 6, 2002;  69 FR 53649 , Sept. 2, 2004]