Pharoah Industries collected $106,000from customers in 2020. Of the amount collected, $24,200was for services performed in 2019. In addition, Pharoah performed services worth $39,400 in 2020, which will not be collected until 2021.

Pharoah Industries also paid $72,800for expenses in 2020. Of the amount paid, $29,100was for expenses incurred on account in 2019. In addition, Pharoah incurred $41,500of expenses in 2020, which will not be paid until 2021.

(a)

Compute 2020 cash-basis net income.

Cash-basis net income$

(b)

Compute 2020 accrual-basis net income.

Accrual-basis net income$