The following fact situation pertains to questions 1 and 2 below:

In one year a company earned $100,000 in revenue all of which resulted from credit sales to its customers. Of that amount $85,000 had been paid by those customers. The same company incurred expenses in the amount of $80,000. Of that amount, $68,000 had actually been paid in cash by year's end.

Assuming the company uses the ACCRUAL BASIS of accounting, net income for the year is:

Group of answer choices

20,000

17,000

32,000

5,000

Assuming the company uses the CASH BASIS of accounting, net income for the year is:

Group of answer choices

17,000

20,000

32,000

5,000