Sec. 32.4220  Premium on long-term debt.

    (a) This account shall include the premium associated with all 
classes of long-term debt. Premium, as applied to securities issued or 
assumed by the company, means the excess of the current money value 
received at their sale over the sum of their book or face amount and 
interest or dividends accrued at the date of the sale.
    (b) Amounts included in this account shall be amortized monthly by 
the interest method and credited to Account 7510, Interest on Funded 
Debt. (Note also Sec. 32.4210(c) of this subpart.)
    (c) Subsidiary records shall be maintained to identify the premium 
attributable to each issue.