At the beginning of 2015, Pitman Co. purchased an asset for $1,200,000 with an estimated usefull 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.

1) what are the book basis and the tax basis of the asset at the end of 2015?

2) how much and which deferred tax account is reported on Pitmant's balance sheet at the end of 2015?