232 VALUATION, DEPRECIATION AND THE RATE-BASE 
ice, less a suitable allowance on account of the second-hand 
parts remaining therein. 
« When a unit of property other than land or equipment — 
such as a section of road, side or yard track, shop or power plant 
machine, building, or other structure — is retired from service 
and not replaced, the ledger value shall be credited to the 
appropriate property accounts at the time that the property is 
retired from service. The amount of this credit shall be con- 
currently charged as follows: 
“ An amount equal to the credit balance in the accrued depre- 
ciation balance-sheet account with respect to the property thus 
retired shall be charged to that account, and the remainder 
(less salvage and insurance recovered, if any), together with the 
cost of demolishing the property if demolished by or for the 
account of the carrier, shall be charged to the appropriate profit 
and loss account. The accounting for the salvage shall be in 
accordance with the disposition made of the material recovered.” 
Retirement of Land, Interstate Commerce Commission. — 
In the matter of land retired from use the Commission says: 
“ When any land, the cost of which is included in the accounts 
of this classification, is retired, the ledger value shall be credited 
to account ¢ Land for transportation purposes.’ If the land is 
retained by the carrier, its estimated value shall be charged to 
balance-sheet account ‘Miscellaneous physical property,” the 
necessary adjustment of the difference between the ledger value 
and the estimated value on account of the loss in the property 
due to its retirement from transportation service shall be made 
through Profit and Loss. If sold, the difference between the 
ledger value . . . and the amount received for the land shall be 
adjusted in Profit and Loss.” 
Engineering Account, Interstate Commerce Commission. — 
Relating to engineering on the construction of a railroad, the 
Commission says: 
« This account shall include the pay and expenses of engineers, 
assistants, and clerks engaged in the survey and construction of 
new lines and extensions, or in making additions to and better- 
ments of the carrier’s road, including wharves and docks. 
“ When employees . . . are engaged in the maintenance of 
the road, their pay and expenses while thus employed shall be 
charged to Operating Expenses.