220 CMR, 52, PLANT INVESTMENT ACCOUNTS
The plant investment accounts shall be reclassified in accordance with the accounts as prescribed by this classification of accounts.
In case the books do not reflect the present book value of the various items of property prescribed by the classification of accounts, an estimate of the value should be made.
It is intended that the books shall show the original cost of all additions made to the property since the adoption of the classification of accounts and shall be carried at such value until such property is abandoned, sold, reconstructed or converted.
In case any property is abandoned, sold, reconstructed or converted, the original cost or book value of the property, less the salvage, shall be charged to "Depreciation Reserve" provided the reserve is sufficient to cover the value of the plant retired. If the balance in the reserve account is not sufficient to cover the cost of the plant retired, the amount not covered may be charged to Profit and Loss.
220 CMR, 52, PLANT INVESTMENT ACCOUNTS