I wasn't sure where 15A was going to fall out in the new world so . . . update on 20R- so some people will be in the know.

Per conversations with Carrie Chaffin, I have learned that all construction interest has been moved off of 20R and onto 15A. 

 I have received detail of 20R's interest income acct (SAP# 62000000).  The detail confirms that this activity is no longer on 20R.

On 20R's 2000 return, we reversed the construction interest income.  And- we had to reduce the depreciation taken on these assets for tax.  We did this by depreciating the construction interest amount as a negative depreciation.  This was done to reduce the tax basis being depreciated by the construction interest not recognized for tax.

I am assuming that  we will reverse the construction interest income on 15A since that is where it is being recorded.  Celeste- you might want to see if you can find this on your SAP ledger for next close- or leave a note to whoever is taking over 15A.

My questions is how are we going to handle the depreciation issue.  Because- isn't it our understanding that the basis is still on 20R?

Also- since we reversed the interest income on 20R in 2000 as a temporary item- I guess we are going to have to transfer the tax balance associated with the M-1 to 15A at some point??  So- that it can be tracked to turn.  At what point it is appropriate to do that?

Thanks-
Shanna