Following Are the Total Assets and Liabilities at the Beginning

Essay

Following are the total assets and liabilities at the beginning and end of the year for Maren Corporation:
$\begin{array}{|l|r|r|}\hline &{\text { Assets }} & \text { Liabilities } \\\hline \text { Beginning of the year } & \$ 70,000 & \$ 45,000 \\\hline \text { End of the year } & 130,000 & 40,000 \\\hline\end{array}$ Determine the net income or loss for the year in each of the following situations:
a.The stockholders made no investments in the business and no dividends were paid during the year.
b.The stockholders made an investment of $20,000 and a dividend of $12,000 was paid during the year.