File Edit View Favorites Tools Help Q 27 In its first year of operations, Grace Company reports the following: Eamed revenues of $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash paid oward them); Prepaid $8,000 cash for costs that will not be expensed until next year. Net incom under the accrual basis of accounting is: Select one: O a. $21,000 O b. $17,000. O c. $13,000. O d. $25,000. O e. None of the answer choices is correct