Ceti Co. sells environmentally friendly coffee cups through an online store. The company is owned by Ceti Kadi. The following transactions took place over the first two years of operations:

Year	Description
20X1	Purchased 8,900 units for resale at $13.50 each
20X1	Purchased furniture and equipment using the companys line of credit (Note 1)
20X1	Incurred other operating expenses of $25,300 during the year
20X1	Sold 7,250 units in cash, with a total cost of $24.50 per unit
20X1	Paid $10,800 toward the companys line of credit (including interest of $1,540)
20X2	Purchased 13,400 units for resale at $13.50 each
20X2	Sold 12,500 units in cash with a total cost of $24.50 per unit
20X2	Incurred other operating expenses of $30,200 during the year
20X2	Paid $15,900 toward the companys line of credit (including interest of $1,310)

Furniture and equipment has the following estimated useful lives. Ceti depreciates furniture and equipment using the straight-line method.

	Cost	Useful life	Fair value 31 Dec 20X1	Fair value 31 Dec 20X2
Equipment	49,500	5 years	44,700	45,200
Furniture	17,500	5 years	9,300	7,400

Required: 1. Calculate the accounting income for 20X1 and 20X2 (use the FIFO method for accounting for inventory). 2.Calculate the total economic income for 20X1 and 20X2.

3. Calculate the total income under the cash basis of accounting.