Lee corp. reported the following available-for-sale marketable equity security on its december 31, 1994, balance sheet: neu corp. common stock, at cost $ 100,000less: allowance for decline in market value (20,000)balance $ 80,000at december 31, 1995, the market value of lee's investment in the neu corp. stock was $85,000. as a result of the 1995 increase in this stock's market value, lee's 1995 income statement should report:

In its first year of operations, sunland company recognized $30,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. the remaining $21,900 was received in cash from customers. the company incurred operating expenses of $18,600. of these expenses, $12,880 were paid in cash; $5,720 was still owed on account at year-end. in addition, sunland prepaid $3,270 for insurance coverage that would not be used until the second year of operations. (a) calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.