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 Company:
$\begin{array}{|l|r|r|}\hline &{\text { Assets }} & {\text { Liabilities }} \\\hline \text { Beginning of the year } & \$ 70,000 & \$ 45,000 \\\hline \text { End of the year } & 108,000 & 40,000 \\\hline\end{array}$ Determine the net income or loss for the year in each of the following situations:
a. The owner made no investments in the business and no withdrawals were made during the year.
b. The owner made an investment of $20,000 and withdrew $12,000 during the year.