In its first year of operations, Crane Company recognized $ 30,240 in service revenue, $ 6,480 of which was on account and still outstanding at year-end. The remaining $ 23,760 was received in cash from customers. The company incurred operating expenses of $ 17,064. Of these expenses, $ 12,960 were paid in cash: $4,104 was still owed on account at year-end. In addition, Crane prepaid $ 2,592 for insurance coverage that would not be used until the second year of operations (a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting. Cash Basis Accrual Basis Net Income