MC Qu. 149 In its first year of operations, Grace Company reports the. In its first year of cash basis of accounting is: operations, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received from customers), Incurred ($31,000 cash paid toward them): Prepaid $8.000 cash for costs that will not be expensed until next year. Net income under the Multiple Choice $17,000 $21000. $13,000 $25.000 None of the answer choices is correct Prev14 of 15 Next