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Reliable Corporation provides computer consulting services to the local community and keeps its accounting records using cash-basis accounting. For the current year, cash was received from customers, $30,000, and cash salaries to employees were paid, $20,000. At the beginning of the year, customers owe Reliable $1,200. By the end of the year, customers owe $4,000. At the beginning of the year, Reliable owes employee salaries of $3,000. At the end of the year, Reliable owes employee salaries of $2,000.
Problem 1: Find the Cash-basis net income:
Problem 2: Find the Accural-basis net income:
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