Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $590,000 for services rendered to its clients and paid out $421,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities: Accounts receivable Prepaid insurance Prepaid rent Deferred service revenue Accrued liabilities (for various expenses) January 1, 2021 $71,000 5,400 10,100 10,100 December 31, 2021 $ 67,000 7,200 8,300 12,400 13,100 16,900 In addition, 2021 depreciation expense on office equipment is $26,500. Required: Determine accrual basis net income for 2021. Cash basis income Add: Increase in prepaid insurance Increase in prepaid rent Increase in prepaid rent Deduct: Decrease in accounts receivable Decrease in prepaid rent Increase in accrued liabilities Depreciation expense Increase in deferred service revenue Required: Determine accrual basis net income for 2021. Answer is not complete. Cash basis income Add: Increase in prepaid insurance Increase in prepaid rent Increase in prepaid rent Deduct: Decrease in accounts receivable Decrease in prepaid rent Increase in accrued liabilities Depreciation expense Increase in deferred service revenue Increase in accounts receivable Increase in accounts receivable Accrual basis net income OOO