(a) When property is transferred from one water plant account to another, from one utility department to another, such as from water to electric, from one operating division or area to another, to or from accounts 101, Water Plant in Service, 104, Water Plant Leased to Others, and 105, Water Plant Held for Future Use, the transfer shall be recorded by transferring the original cost thereof from the one account, department, or location to the other. Any related amounts carried in the accounts for accumulated provisions for depreciation or amortization shall be transferred in accordance with the segregation of such accounts.

(b) When depreciable property is transferred from the water plant accounts to account 121, Nonutility Property, the transfer shall be accomplished by crediting the water plant accounts and charging the accumulated provision for depreciation with the book cost of the item transferred; the accumulated provision for depreciation shall then be credited, as the estimated salvage, and account 121, Nonutility Property, concurrently charged with the market value of the property transferred. If the property is sold within a relatively short time, a debit or credit shall be made to the accumulated provision for depreciation to adjust the estimated salvage to the amount actually realized. If at the time of transfer, the market value is less than the cost new, account 121 may be charged with the cost new (instead of the market value) and account 122, Accumulated Provision for Depreciation and Amortization of Nonutility Property, credited with the difference between such cost and the market value.

(c) When nondepreciable land or land rights are transferred from the water plant accounts to account 121, Nonutility Property, the transfer shall be accomplished by crediting the appropriate plant accounts with the book cost of such property and charging account 121, Nonutility Property, with the market value of the property transferred; any difference between the book cost and the market value of the property transferred shall be included in account 117, Accumulated Gains and Losses from Disposition of Utility Land and Land Rights. If the property is sold within a relatively short time the related gain or loss previously recorded in account 117, shall be adjusted to the amount actually realized upon sale of such property.