During 2012, Stacker Enterprises earned $55,000 from services provided and incurred $15,500 of expenses. At the end of the year, Stacker had received cash for $35,750 of the revenues and had paid $11,600 of the expenses. Also during 2012, Stacker received $3,500 cash for services to be performed in 2013 and paid $4,500 for rent for the first six months of 2013.
Required
Determine 2012 net income under (a) the cash basis and (b) the accrual basis of accounting.