Conan Industries collected \($100,000\) from customers in 2008. Of the amount collected, \($25,000\) was from revenue earned on account in 2007. In addition, Conan earned \($40,000\) of revenue in 2008, which will not be collected until 2009. Conan Industries also paid \($70,000\) for expenses in 2008. Of the amount paid, \($30,000\) was for expenses incurred on account in 2007. In addition, Conan incurred \($42,000\) of expenses in 2008, which will not be paid until 2009. 

Instructions

(a) Compute 2008 cash-basis net income.

(b) Compute 2008 accrual-basis net income.