Answer:
2018 9,000 net income RE 9,000
2019 16,000 income RE 20,000
2020 18,000 income RE 38,000
Explanation:
we will do revenues less expenses to get the net income under cash basis:
year ended December 31th, 2018
revenue $ 20,000 - expense $ 11,000 = $9,000 income
Thus, 9,000 RE
year ended December 31th, 2019
revenue for 30,000 - expense 14,000 = 16,000 income
beginning 9,000
income 16,000
dividends (5,000)
endining 20,000
year ended December 31th, 2020
$ 40,000 - $ 22,000 = $ 18,000
20,000 beginning + 18,000 income = 38,000