In its first year of operations, Harris Co. earned $39,000 in revenues and received $33,000 cash from customers. The company incurred expenses of $22,500, but had not paid for $2,250 of them at year-end. In addition, Harris prepaid $3,750 for expenses that would be incurred the next year. Calculate the first year's net income under the cash basis and calculate the first year's net income under the accrual basis.