In its first year of operations,Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year.Net income under the accrual basis of accounting is:
A)$17,000.
B)$21,000.
C)$13,000.
D)$25,000.
E)None of the answer choices is correct.

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The Answer of In its first year of operations,Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year.Net income under the accrual basis of accounting is:
A)$17,000.
B)$21,000.
C)$13,000.
D)$25,000.
E)None of the answer choices is correct.

In Its First Year of Operations,Grace Company Reports the Following