At the beginning of 2021, Useh Co. purchased an asset for $2,500,000 with an estimated useful life of 5 years and an estimated salvage value of $200,000. 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.

Useh Co.s tax rate is 25% for 2021 and all future years.

1) At the end of 2021, what are the book basis and the tax basis of the asset?

2) At the end of 2021, which of the following deferred tax accounts and balances is reported on Pitmans balance sheet?