Under Utility Regulatory Accounting Principles (RAP), the Account "Utility Plant

question 56

Multiple Choice

Under utility regulatory accounting principles (RAP) , the account "Utility Plant Acquisition Adjustment" reflects:

• A) The difference between the amount paid for utility plant and the amount originally paid by the utility that first placed the plant into public service, less accumulated depreciation.
• B) The difference between the fair market value of the utility plant and the amount paid for it, less accumulated depreciation.
• C) The difference between the amount paid for the utility plant less its current replacement cost.
• D) The difference between the amount paid for the utility plant less the fair market value of its tangible plant assets.