In its first year of operations, 2020,BridgeportCorp. invoiced $181,000in service revenue. Of that amount, $25,000was still owing from customers at the end of year. In 2020,Bridgeportincurred various operating expenses totalling $86,000, of which $75,000was paid in cash. Salaries and wages paid to employees totalled $65,000and $3,100was still owing at the end of the year. In addition,Bridgeportprepaid $4,700for insurance coverage that covered the last half of 2020 and the first half of 2021.Bridgeportestimates it will owe $9,900in income tax when it files its corporate income tax return after its 2020 year end.

Calculate the net income for 2020 under the accrual basis of accounting.

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