Several years ago, Western Electric Corp. purchased equipment for $200,000. Western uses straight-line depreciation for financial reporting and accelerated depreciation for tax purposes. The financial statement carrying value of the equipment was $180,000 at December 31, 2020, and $160,000 at December 31, 2021. The tax basis was $150,000 at December 31, 2020, and $110,000 at December 31, 2021. There were no other temporary differences and no permanent differences. Pretax accounting income for the year ended December 31, 2021 was $2,500,000. A tax rate of 25% applies to all years.