Sec. 21.09.01.17. Rental and Leasing Costs for Organizations under Common Control

A. Charges in the nature of rent between any division, subsidiary, or organization under common control are allowable to the extent the charges do not exceed the allowable costs of ownership of the lessor. In determining the cost of ownership, items such as depreciation, taxes, insurance, and maintenance, shall be considered.

B. Rental costs of personal property leased from any division, subsidiary, or organization under common control which has an established practice of leasing the same or similar property to unaffiliated leases, are allowable provided that they are reasonable. Factors to be considered with respect to reasonableness may include rental costs of comparable property, market condition in the area, the type, life expectancy, condition, and value of the property leased, and other alternatives available.