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

Earned revenues of $62,000 ($54,000 cash received from customers).

Incurred expenses of $34,000 ($26,200 cash paid toward them).

Prepaid $11,000 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.