At the beginning of 2021, Crane Co. purchased an asset for $1200000 with an estimated useful life of 5 years and an estimated salvage value of $90000. 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. Crane Co.s tax rate is 20% for 2021 and all future years. At the end of 2021, what are the book basis and the tax basis of the asset?

Book basis

Tax basis

$888000

$630000

$978000

$720000

$888000

$720000

$978000

$630000