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The Board therefore believes that the "investment credit" should be reflected in income over the productive life of the acquired facilities rather than in the year of their acquisition. Accordingly, the Board is of the opinion that the amount of the "investment credit" should be applied to reduce the recorded cost of the acquired facilities, either directly or by inclusion in an offsetting account which would be deducted from the cost of the facilities for purposes of both balance-sheet presentation and calculation of periodic depreciation.
Investment tax credit -- Accounting -- Standards -- United States
Accounting | Taxation
American Institute of Certified Public Accountants. Accounting Principles Board, "Accounting for the investment credit; Exposure draft (American Institute of Certified Public Accountants), 1962, Nov. 1" (1962). Statements of Position. 337.