Message-ID: <267551.1075853102594.JavaMail.evans@thyme> Date: Mon, 20 Aug 2001 13:21:00 -0700 (PDT) From: shanna.husser@enron.com To: patricia.lee@enron.com, mary.fischer@enron.com, celeste.daigle@enron.com, sally.seelig@enron.com Subject: Re: Construction Interest moved from 20R to 15A Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Shanna Husser X-To: Patricia A Lee , Mary Fischer , Celeste Daigle , Sally Seelig X-cc: X-bcc: X-Folder: \MFISCHER (Non-Privileged)\Fischer, Mary\Inbox X-Origin: Fischer-M X-FileName: MFISCHER (Non-Privileged).pst 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