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enguin Network Warehouses, LLC (PNW, LLC) is a start-up warehousing and logistics company providing grocery tores with climate controlled storage and Just-in-time delivery of perishable

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enguin Network Warehouses, LLC (PNW, LLC") is a start-up warehousing and logistics company providing grocery tores with climate controlled storage and Just-in-time delivery of perishable goods nationwide.PNW.LLC has 10 egional Offices with the Corporate Headquarters being in Region 5, Chicago. Each Regional Office makes tangible ersonal property purchases based on the needs of each location and performs the data entry exercise of entering the purchase information into a central system for fixed asset tracking and depreciation purposes Corporate has negotiated bulk pricing arrangements with its primary suppliers. Each Regional Office purchases the Similar tangible personal property from three primary suppliers as follows: Gentoo Refrigeration supplier of commercial cooling machinery and equipment Magellanic Resources - supplier of computers and peripheral equipment used to manage logistics Emperor Office Furniture - supplier of office furniture and fixtures Ms. Humboldt, the Corporate Tax Analyst, has exported the data from the central system and has created the following Tableau visualization Penguin Network Warehouses, LLC MACRS Depreciation Year 1 Supplier (All) Mi Emperor Offi Gentoo Refri. vi MagellanicR Regional Office AD Atlanta Boston Chicago Dalas Denver Kansas City | headelphia San Franco 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 Required: 1. How much depreciation is reported by Philadelphia Region 3 on assets purchased from Magellanic Resources? 2. How much depreciation is reported by Kansas City Region 7 on assets purchased from Magellanic Resources? 3. What asset class life was used by Kansas City Region 7 on assets purchased from Magellanic Resources? 4. Did Kansas City Region 7 under or over report depreciation on assets purchased from Magellanic Resources? 5. What is the correct depreciation for Kansas City Region 7 on assets purchased from Magellanic Resources? enguin Network Warehouses, LLC (PNW, LLC") is a start-up warehousing and logistics company providing grocery tores with climate controlled storage and Just-in-time delivery of perishable goods nationwide.PNW.LLC has 10 egional Offices with the Corporate Headquarters being in Region 5, Chicago. Each Regional Office makes tangible ersonal property purchases based on the needs of each location and performs the data entry exercise of entering the purchase information into a central system for fixed asset tracking and depreciation purposes Corporate has negotiated bulk pricing arrangements with its primary suppliers. Each Regional Office purchases the Similar tangible personal property from three primary suppliers as follows: Gentoo Refrigeration supplier of commercial cooling machinery and equipment Magellanic Resources - supplier of computers and peripheral equipment used to manage logistics Emperor Office Furniture - supplier of office furniture and fixtures Ms. Humboldt, the Corporate Tax Analyst, has exported the data from the central system and has created the following Tableau visualization Penguin Network Warehouses, LLC MACRS Depreciation Year 1 Supplier (All) Mi Emperor Offi Gentoo Refri. vi MagellanicR Regional Office AD Atlanta Boston Chicago Dalas Denver Kansas City | headelphia San Franco 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 Required: 1. How much depreciation is reported by Philadelphia Region 3 on assets purchased from Magellanic Resources? 2. How much depreciation is reported by Kansas City Region 7 on assets purchased from Magellanic Resources? 3. What asset class life was used by Kansas City Region 7 on assets purchased from Magellanic Resources? 4. Did Kansas City Region 7 under or over report depreciation on assets purchased from Magellanic Resources? 5. What is the correct depreciation for Kansas City Region 7 on assets purchased from Magellanic Resources

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