CASH-BASIS AND ACCRUAL-BASIS ACCOUNTING. The records of Summers Lumber Company reveal the following information for 19x8:

a) Cash receipts during 19x8 (including $50,000 paid by stockholders in exchange for capital stock), $220,000.

b) Cash payments during 19x8 (including $8,000 of dividends paid to stockholders),

$132,000.

c) Total selling price of goods delivered to customers during 19x8, $183,000.

d) Cost of goods delivered to customers during 19x8, $107,000.

e) Cost of assets used during 19x8 in the operation of the business, $42,000.

REQUIRED:

Calculate Summers Lumber’s 19x8 net income on both an accrual basis and a cash basis. L-1