Compute the current period net income for a company that has the following transactions using (1) a cash basis of accounting and (2) an accrual basis of accounting:

• Customers pay in advance $2,000 for services
• The company provides 3/4 of the services before the end of the period
• the company's staff earns $500 but is not paid until the following period
• The company pays $400 for a one-year insurance policy, with one-fourth of the policy associated with the current period and the remaining 3/4 of the policy associated with the following period

Cash Basis; Accrual Basis

a.) $2,000, $900

b.) $2,000; $1,400

c.) $1,600; $900

d.) $1,600; $1,400