In its first year of operations, 2020, Whispering Winds Corp. invoiced $189,000 in service revenue. Of that amount, $23,000 was still owing from customers at the end of year. In 2020, Whispering Winds incurred various operating expenses totalling $91,000, of which $82,000 was paid in cash. Salaries and wages paid to employees totalled $67,000 and $2,300 was still owing at the end of the year. In addition, Whispering Winds prepaid $4,000 for insurance coverage that covered the last half of 2020 and the first half of 2021. Whispering Winds estimates it will owe $8,100 in income tax when it files its corporate income tax return after its 2020 year end. 1..Calculate the net income for 2020 under the accrual basis of accounting.

2.Calculate the net income for 2020 under the cash basis of accounting.