Ginger has her own accounting practice and her fiscal year end is December 31. Her regular billing rate is $100 per hour. One of her clients has a November 30 year end. Work is done on the file during December and January and the client is billed on February 1 of each year. Billable hours for this client are as follows:

Dec. 2016 Jan. 2017 Dec. 2017 Jan. 2018

For Nov. 30, 2016 year end 25 35

For Nov. 30, 2017 year end 32 30

Gingers 2017 Net Income For Tax Purposes for this particular client is:

Select one:

a.

$6,700 on the accrual basis and the billed basis of recognition

b. $6,200 on the accrual basis or $5,500 on the billed basis of recognition

c.

$6,200 on the accrual basis or $6,000 on the billed basis of recognition

d. $6,700 on the accrual basis or $6,000 on the billed basis of recognition