In its first year of operations, Grace Company reports the following: Earned revenues of $60,000($52,000 cash recived from customers); incurred expenses of $35,000($31,000 cash paid toward them; prepaid $8,000 cash for costs that will not be expensed until next year. Net income under the cash basis of acounting is:

$17,000

$21,000

$13,000

$25,000

none of these choices are correct

In its first year of operations, Grace Company reports the following: Earned revenues of $60,000 ( $52,000 cash received from customers); incurred expenses of $35,000 ($31,000 cash paid toward them); prepaid $8,000 cash for costs that will not be expensed until next year. Net income under the cash basis of accounting is: $17,000. $21,000. $13,000. $25,000. None of these choices are correct