Multiple Choice, Question 52 At the beginning of 2010, Pitman Co. purchased an asset for $600,000 with an estimated useful life of 5 years and an...

Multiple Choice, Question 52At the beginning of 2010, Pitman Co. purchased an asset for $600,000 with an estimated useful life of 5 years and an estimated salvage value of $50,000. 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 2010 and all future years.At the end of 2010, what is the book basis and the tax basis of the asset?Book basisTax basis$440,000$360,000$490,000$360,000$440,000$310,000$490,000$310,000