Primo Industries collected $106,000 from customers in 2017. Of the amount collected, $25,600 was for services performed in 2016. In addition, Primo performed services worth $40,700 in 2017, which will not be collected until 2018. Primo Industries also paid $73,700 for expenses in 2017. Of the amount paid, $30,900 was for expenses incurred on account in 2016. In addition, Primo incurred $42,000 of expenses in 2017, which will not be paid until 2018.(a) Compute 2014 cash-basis net income. Cash-basis net income $ (b) Compute 2014 accrual-basis net income. Accrual-basis net income $

On january 1, 2018, wetick optometrists leased diagnostic equipment from southern corp. which had purchased the equipment at a cost of $2,256,342. the lease agreement specifies six annual payments of $490,000 beginning january 1, 2018, the beginning of the lease, and at each december 31 thereafter through 2022. the six-year lease term ending december 31, 2023 (a year after the final payment), is equal to the estimated useful life of the equipment. the contract specifies that lease payments for each year will increase on the basis of the increase in the consumer price index for the year just ended. thus, the first payment will be $490,000, and the second and subsequent payments might be different. the cpi at the beginning of the lease is 120. southern routinely acquires diagnostic equipment for lease to other firms. the interest rate in these financing arrangements is 12%. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) prepare the appropriate journal entries for wetick and southern to record the lease at its beginning.