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Use the Following Information for Questions 52 and 53

question 105

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Use the following information for questions 52 and 53.
At the beginning of 2015, Pitman Co. purchased an asset for $1,200,000 with an estimated useful life of 5 years and an estimated salvage value of $100,000. 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 2015 and all future years.
-At the end of 2015, what are the book basis and the tax basis of the asset? Use the following information for questions 52 and 53. At the beginning of 2015, Pitman Co. purchased an asset for $1,200,000 with an estimated useful life of 5 years and an estimated salvage value of $100,000. 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 2015 and all future years. -At the end of 2015, what are the book basis and the tax basis of the asset?

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