Doner Company Inc. begins operations on January 1, Year 1. The company's unadjusted financial statements for the year ended December 31, Year 1, appear as follows:

Revenues and expenses occur evenly throughout the year; revenues and other expenses are realized in terms of monetary assets (cash and receivables).
General price indexes for Year 1 are as follows:
1/1/Y1 100
Average Y1 120
12/31/Y1 150
Required:
a. Calculate Doner Company's Year 1 purchasing power gain or loss on net monetary items.
b. Determine Doner Company's Year 1 income on a general purchasing power basis (ignore income taxes).