Please solve 1 and 2 based on the data given.As typical of a start-up business, PNW, LLC expects to generate a current year loss with regular deprecation. As such, PNW, LLC does not elect Section 179 depreciation and elects out of bonus depreciation. PNW, LLC qualifies for the half year convention. Did Kansas City Region 7 under or over report depreciation on assets purchased from Magellanic Resources?What is the correct depreciation for Kansas City Region 7 on assets purchased from Magellanic Resources? SupplierPenguin Network Warehouses, LLC(All)MACRS Depreciation Year 1Emperor Office Furn..Gentoo RefrigerationRegional OfficeV Magellanic Resources$240,000$220,000$200,000$180,000V Keep Only O Exclude$160,000Regional Office: PhiladelphiaRegion: 3MACRS Year 1:0.20000Purchase Amount: 1,152,863Tax Depreciation Year 1: $230,573$140,000Regional Office$120,000(All)AtlantaBoston$100,000ChicagoDallasDenver$80,000M Kansas CityNew York CityV Philadelphia$60,000San Francisco| Seattle$40,000$20,000$0Kansas CityPhiladelphia* + ableauMACRS Tax Depreciation Year 1 SupplierPenguin Network Warehouses, LLC(All)MACRS Depreciation Year 1Emperor Office Furn..Gentoo RefrigerationRegional OfficeV Magellanic Resources$240,000$220,000$200,000$180,000$160,000$140,000V Keep Only O ExcludeRegional Office$120,000(All)Regional Office: Kansas CityRegion: 7AtlantaBostonMACRS Year 1:0.14290$100,000Purchase Amount: 1,097,148ChicagoTax Depreciation Year 1: $156,782DallasDenver$80,000V Kansas CityNew York CityV Philadelphia$60,000San FranciscoSeattle$40,000$20,000$0Kansas CityPhiladelphia整+ableauMACRS Tax Depreciation Year 1

Depreciation is defined as the depletion in the value of fixed asset which is held with the entity…

Answered: Did Kansas City Region 7 under or over…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Please solve 1 and 2 based on the data given.

As typical of a start-up business, PNW, LLC expects to generate a current year loss with regular deprecation. As such, PNW, LLC does not elect Section 179 depreciation and elects out of bonus depreciation. PNW, LLC qualifies for the half year convention.

Did Kansas City Region 7 under or over report depreciation on assets purchased from Magellanic Resources?
What is the correct depreciation for Kansas City Region 7 on assets purchased from Magellanic Resources?

Supplier
Penguin Network Warehouses, LLC
(All)
MACRS Depreciation Year 1
Emperor Office Furn..
Gentoo Refrigeration
Regional Office
V Magellanic Resources
$240,000
$220,000
$200,000
$180,000
V Keep Only O Exclude
$160,000
Regional Office: Philadelphia
Region: 3
MACRS Year 1:0.20000
Purchase Amount: 1,152,863
Tax Depreciation Year 1: $230,573
$140,000
Regional Office
$120,000
(All)
Atlanta
Boston
$100,000
Chicago
Dallas
Denver
$80,000
M Kansas City
New York City
V Philadelphia
$60,000
San Francisco
| Seattle
$40,000
$20,000
$0
Kansas City
Philadelphia
* + ableau
MACRS Tax Depreciation Year 1

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