At the beginning of 2013 pitman co purchased an asset for

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At the beginning of 2013, Pitman Co. purchased an asset for $900,000 with an estimated useful life of 5 years and an estimated salvage value of $75,000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method is being used. Pitman Co.'s tax rate is 40% for 2013 and all future years.

At the end of 2013, what is the book basis and the tax basis of the asset?

Reference no: EM13484603

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