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C is corrent. The requirement is to determine the difference between accrual-basis income and cash-basis income. Because accounts receivable decreased by $20,000, the cash received was $20,000 more than the accrual-basis sales.  Since accounts payable increased by $16,000 during the year, accrual-basis expenses were $16,000 more than cash payments.  Therefore, accrual-basis net income is equal to $114,000 ($150,000 – 20,000 – $16,000), and therefore, cash-basis pretax income is $36,000 ($150,000 – $114,000) higher than accrual-basis income.
A is incorrect.   The requirement is to determine the difference between accrual-basis income and cash-basis income. Because accounts receivable decreased by $20,000, the cash received was $20,000 more than the accrual-basis sales.  Since accounts payable increased by $16,000 during the year, accrual-basis expenses were $16,000 more than cash payments.  Therefore, accrual-basis net income is equal to $114,000 ($150,000 – 20,000 – $16,000), and therefore, cash-basis pretax income is $36,000 ($150,000 – $114,000) higher than accrual-basis income.  
A is incorrect.   The requirement is to determine the difference between accrual-basis income and cash-basis income. Because accounts receivable decreased by $20,000, the cash received was $20,000 more than the accrual-basis sales.  Since accounts payable increased by $16,000 during the year, accrual-basis expenses were $16,000 more than cash payments.  Therefore, accrual-basis net income is equal to $114,000 ($150,000 – 20,000 – $16,000), and therefore, cash-basis pretax income is $36,000 ($150,000 – $114,000) higher than accrual-basis income.  
D is incorrect.  The requirement is to determine the difference between accrual-basis income and cash-basis income. Because accounts receivable decreased by $20,000, the cash received was $20,000 more than the accrual-basis sales.  Since accounts payable increased by $16,000 during the year, accrual-basis expenses were $16,000 more than cash payments.  Therefore, accrual-basis net income is equal to $114,000 ($150,000 – 20,000 – $16,000), and therefore, cash-basis pretax income is $36,000 ($150,000 – $114,000) higher than accrual-basis income.