upr000274 39

V 2 . . 5. (continued) Of the total (a), #346.00 is carried in Account 6,l e"dRgoero mviangl uHeo uofs e it-em Nevada", on Form 141. The remainder of this item,$285.31, P^-Us "the ledger values of items (b) and (c), aggregates $4,110.79 which is the total amount reported oh Form 141 for Account 14, "Work Shop and Equipment - Nevada". The aggregate of the ledger values for items (d) and (e), $3,763.80, is included in the total amount reported on Feoorusm P1r4o1p efrort yA c- cNoeuvnatd a1"1., "Office Furniture and Miscellan­With respect to the depreciation, $140.73 has been accrued on the $346.00 portion of item (a),which is included in the total amount reported on Form 141 for Account 40, "Accrued Depreciation - Rooming House Building". Depreciation has not been accrued on the $285.31 portion of this item. The amount of $130.50 represents the fully depreciated portion' of the ledger value of item (b), vhlc h is reported on Form 141 for Account 135, "Accrued Depre­ciation - Tools and Equipment". The remainder of the ledger value of item fb) represents small tools which are replaced through operating expenses and, therefore, are non­depreciable. The aggregate of the depreciation for items tc), (d) and (e) is $2,889.99 and represents the amount reported on Form 141 for Account 89, "Accrued Depreciation- Miscellaneous Equipment". As information in connection with the above, the Work Shop Building, item (a), will be replaced under W.Q. 634 approved February 7, 1950. Also, the Chevrolet sedan, item (d), was sold March 17, 1950 and will be retired from the accounts during the present year. As of December 31, 1949, assignments of the above items of depreciation have been made as follows: Assigned to water service operations; Item (b) $ 130.50 " (c) 1,255.38 Not assigned to water service operations: Item (a) $ 140.73 " (<i) 1,039.00 " (e) 595.61 The proposal to assign the accruals on item (e) to water ser­vice operations in the future is now under consideration. Your assumption that this depreciation expense is not handled through clearing accounts is correct. All depreciation accruals are charged direct to operating expenses. Additional information will follow. R. M. SUTT