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SUBJECT: Sale of Water Facilities at Las Vegas, Nevada 195A, file W-26, copy of which was furnished you, regarding question as to how salvage value of pumping facilities re­moved from Wells 8 and 10 under L.V,L,& W.Go, Work Order 750 should he treated in sale to the Water Bistriet. trlct, we are adding the net charged to Investment Account for all additions and betterments, which includes the credit for the cost at current prices of the property retired on a better­ment basis provided for by Work Order 750, the labor being charged to Operating Expenses, It seems to us therefore, that any salvage material acquired under either betterment or retirement projects could properly be sold to the Water District, since under either pro­ject the salvage value is recorded on the books of the L.V.L.& W.Go. in the ledger account ^Material and Supplies* and the Water District is receiving credit under provision of section 10 (b) of the sale contract on retirement projects and credit under betterment projects as stated above. It will be appreciated if you will furnish us with your views in the matter. ? LAS VISAS LANS AND WATER COMPART Omaha - April 30» 195^ BB 1-8-2 Mr. E. E. Bennett - Los Angeles, California: Mr. L. R. Maag, has Vegas, Nevada) This refers to Mr. L. R. Maag*s letter March 17 (00 - Mr. Wm. Reinhardt, Los Angeles, Calif.: Onder section 9 of sale contract to the Water Dls- For the Auditor WM. R. MAY 5 1954