Exercise 3-3Concordia Industries collected $105,000 from customers in 2014. Of the amount collected, $28,000 was from revenue accrued from services performed in 2013. In addition, Concordia recognized $44,000 of revenue in 2014, which will not be collected until 2015.

Concordia Industries also paid $72,000 for expenses in 2014. Of the amount paid, $30,000 was for expenses incurred on account in 2013. In addition, Concordia incurred $37,000 of expenses in 2014, which will not be paid until 2015.



a)Compute 2014 cash-basis net income.



Cash-basis net income

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(b)Compute 2014 accrual-basis net income.



Accrual-basis net income

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