Delta Corporation (the Company) maintains its books and records on an accrual method of accounting and through December 31, 2020, filed its income tax return on the cash method of accounting. During 2021, the Company intends to change its method of accounting from the cash method to the accrual method. The Company has always operated as a C-Corporation and its sole owner, Dallas, purchased 100% of the Company's outstanding stock for $225,000 from the Company's former owner on June 30, 2017. The Company's 2021 trial balance follows. Delta Corporation Trial Balance 12.31.21 Debit Credit Cash 45,000 Accounts receivable 150,000 Property and equipment 1,250,000 Accumulated depreciation 1,250,000 Accounts payable 75,000 Note payable- equipment 125,000 Common stock 2,500 Paid in capital in excess of par Retained earnings (deficit) Net sales Other expenses 97,500 680,000 1,875,000 1,300,000 3,425,000 3,425,000 Required 1. Based on the preceding information, calculate the Company's net Sec. 481 adjustment in connection with its change in accounting method from the cash method to the accrual method. 2. Calculate the amount of the adjustment that will be included in the Company income tax returns for the year(s) 2021-2026. 3. Calculate Dallas' basis in his stock in Delta Corporation as of December 31, 2021.