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

Earned revenues of $60,000 ($52,000 cash received from customers).

Incurred expenses of $33,000 ($25,500 cash paid toward them).

Prepaid $10,500 cash for costs that will not be expensed until next year.

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