In its first year of operations, Roma Company reports the following.

1. Earned revenues of $60,000 ($52,000 cash received from customers).
2. Incurred expenses of $33,000 ($25,500 cash paid toward them).
3. Prepaid $10,500 cash for costs that will not be expensed until next year.

Compute Romas first-year net income under the cash basis and the accrual basis of accounting.