In the course of your examination of the book and records of Gardner Company for the year ending December 31, 2011, you find the following data.

Salaries earned by employees .................$45,000

Salaries paid to employees .................. 42,000

Total sales revenue .................... 800,000

Cash collected from sales .................. 780,000

Utilities expense incurred .................... 4,600

Utilities bills paid .................... 4,300

Cost of Goods sold .................... 475,000

Cash paid on inventory purchases in 2011 ............467,500

Inventory at December 31, 2011...................... 286,400

Tax assessment for 2011.................... 4,000

Taxes paid in 2011 ...................... 3,600

Rent expense for 2011 ...................25,500

Rent paid in 2011 ...................... 23,500

Required:

Compute Gardner Company’s net income for 2011 in a good form

(a) Using accrual basis.

(b) Using cash basis accounting.