Bonnie opens a computer sales and repair service during the current year. Her records for the year show:

Bonnie has computers on hand on December 31 that cost $40,000 and have a retail selling price of $65,000.
Bonnie needs help figuring her taxable income. Is more than one income figure possible? If so, explain why, and compute taxable income under the variousmethods.

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CashLiability Sales Made Rceived Incurred Cash Paid Repair revenue Computer sales Computer purchases Employee wages Supplies, utilities, etc. $30,000 $22,000 26,00018,000 $55,000 $27,500 12,000 10,000 6,000 9,000