At the beginning of 2018, Pitman Co. purchased an asset for $1,800,000 with an estimated useful life of 5 years and an estimated salvage value of $150,000. 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 (2X Asset Cost ÷ Useful Life). Pitman Co.’s tax rate is 40% for 2018 and all future years. At the end of 2018, what are the book basis and the tax basis of the asset? Book basis            Tax basis` a. $1,320,000            $930,000 b. $1,470,000            $930,000 c. $1,470,000            $1,080,000 d. $1,320,000            $1,080,000

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