Exercise 1 O'Brien Industries collected $200,000 cash from customers in 2015. Of the amount collected, $40,000 was from revenue accrued from services performed in 2014, and $20,000 was received in advance for services to be performed in 2016. In addition to the aforementioned events, O'Brien earned $70,000 of revenue in 2015, which will not be collected until 2016. O'Brien also recognized $25,000 of revenue in 2015 which had been collected in 2014. O'Brien Industries paid $140,000 cash for expenses in 2015. Of the amount paid, $50,000 was for expenses incurred on account in 2014, $22,000 was paid in advance for 2016 expenses. In addition to the aforementioned events, O'Brien incurred $78,000 of expenses in 2015, which will not be paid until 2016. O'Brien also incurred $29,000 of expenses in 2015 which had been prepaid in 2014. Instructions: (a) Compute 2015 cash-basis net income. (b) Compute 2015 accrual-basis net income