The City levies taxes in the current year of $2 million. Of this amount $1500000 is collected during the current year, $100000 will be collected next year, and $250000 will be collected in the future. $150000 will never be collected. During the current year, the City pays bills from prior periods $130000, bills of the current period $870000, and defers payment until future periods on bills that were received for services consumed during the current period $50000.

Required: prepare statements of activity (income statements) on both the cash basis and the accrual basis?